<SEC-DOCUMENT>0001391609-15-000066.txt : 20150330
<SEC-HEADER>0001391609-15-000066.hdr.sgml : 20150330
<ACCEPTANCE-DATETIME>20150330165643
ACCESSION NUMBER:		0001391609-15-000066
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20141231
FILED AS OF DATE:		20150330
DATE AS OF CHANGE:		20150330

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EQUUS TOTAL RETURN, INC.
		CENTRAL INDEX KEY:			0000878932
		IRS NUMBER:				760345915
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	814-00098
		FILM NUMBER:		15735172

	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_equus2014.htm
<DESCRIPTION>FORM 10-K
<TEXT>

<HEAD>
     <TITLE></TITLE>
</HEAD>


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

<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>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 2%; padding-left: 5.4pt; font: 10pt/115% Times New Roman, Times, Serif"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><b>&#9746;</b></font></td>
    <td style="width: 98%; padding-right: 5.4pt; padding-left: 5.4pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% 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, 2014</B></P>

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

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <TD STYLE="width: 2%; padding-top: 2.25pt; font: 10pt/115% Times New Roman, Times, Serif"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><b>&#9744;</b></font></td>
    <td style="width: 98%; padding-top: 2.25pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt/115% 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; text-indent: 0.5in"><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; font-family: Calibri, Helvetica, Sans-Serif">
<tr style="vertical-align: top">
    <td style="text-align: center; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>Delaware</b></font></td>
    <td style="text-align: center; font-size: 10pt; line-height: 115%"><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="text-align: center; font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>(I.R.S. Employer Identification No.)</b></font></td></tr>
<tr>
    <td style="font-size: 12pt; line-height: 115%">&nbsp;</td>
    <td style="font-size: 12pt; line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="text-align: center; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>700 Louisiana St. 48<sup>th</sup> Floor, Houston, Texas</b></font></td>
    <td style="text-align: center; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif"><b>77002</b></font></td></tr>
<tr style="vertical-align: top">
    <td style="text-align: center; font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>(Address of principal executive offices)</b></font></td>
    <td style="text-align: center; font-size: 7.5pt; line-height: 115%"><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>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse">
<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: Times New Roman, Times, Serif">&#9744;</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">
No </FONT><FONT STYLE="font-family: Times New Roman, Times, Serif">&#9746;</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 &#9744;
No &#9746;</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 &#9746; No &#9744;</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. &#9744;</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>

<table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse; font-family: Calibri, Helvetica, Sans-Serif">
<tr style="vertical-align: bottom">
    <td nowrap style="padding-top: 2.25pt; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Large
accelerated filer &#9744;</FONT></td>
    <td style="padding-left: 0.1in; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Accelerated
filer &#9744;</FONT></td></tr>
<tr>
    <td style="vertical-align: top; padding-top: 2.25pt; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Non-accelerated
filer &#9746; (Do not check if a smaller reporting company)</FONT></td>
    <td style="vertical-align: bottom; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Smaller
reporting company &#9744;</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 &#9744; No &#9746;</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">$31,430,642</FONT> computed
on the basis of $2.48 per share, closing price of the common stock on the New York Stock Exchange on June 30, 2014. For purposes
of calculating this amount only, all directors and executive officers of the registrant have been treated as affiliates. There
were 12,673,646 shares of the registrant&rsquo;s common stock, $.001 par value, outstanding as of March <FONT STYLE="background-color: White">30</FONT>,
2015. The net asset value of a share of the Registrant as of December 31, 2014 was <FONT STYLE="background-color: White">$2.86</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 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). &#9744;</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 2015 Annual Shareholder&rsquo;s meeting are incorporated by reference in Parts II and III.<B>&nbsp;</B></P>


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<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; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="padding-left: 0.1in; line-height: 115%">&nbsp;</td>
    <td style="padding-left: 0.1in; line-height: 115%">&nbsp;</td>
    <td style="padding-left: 0.1in; font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Page</b></font></td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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; line-height: 115%">&nbsp;</td>
    <td style="vertical-align: bottom; padding-left: 12pt; line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><A HREF="#a_002"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Item
1</FONT></A></td>
    <td style="vertical-align: bottom; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Business</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">3</font></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Risk Factors</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%">10</td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Unresolved Staff Comments</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">18</font></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Properties</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">18</font></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Legal Proceedings</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">18</FONT></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Mine Safety Disclosures</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">18</font></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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; line-height: 115%">&nbsp;</td>
    <td style="vertical-align: bottom; padding-left: 12pt; line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><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; text-align: center; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">19</font></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Selected Financial Data</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">20</font></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><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; text-align: center; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">20</font></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><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; text-align: center; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">31</font></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Financial Statements and Supplementary Data</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">32</FONT></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><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; text-align: center; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">60</FONT></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Controls and Procedures</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">60</FONT></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Other Information</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">60</font></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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; line-height: 115%">&nbsp;</td>
    <td style="vertical-align: bottom; padding-left: 12pt; line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><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; text-align: center; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">61</FONT></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Executive Compensation</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">61</FONT></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><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; text-align: center; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">61</FONT></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><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; text-align: center; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">61</FONT></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif"><A HREF="#a_022">Item 14</A></font></td>
    <td style="vertical-align: bottom; font-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Principal Accountant Fees and Services</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">61</FONT></td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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; line-height: 115%">&nbsp;</td>
    <td style="vertical-align: bottom; padding-left: 12pt; line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: top; padding-left: 12pt; text-indent: -12pt; font-size: 10pt; line-height: 115%"><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-size: 10pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Exhibits and Financial Statement Schedules</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; font-size: 10pt; line-height: 115%"><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; text-indent: 0.5in"></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_001"></A>PART I </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"><A NAME="a_002"></A><B>Item 1. <I>Business </I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">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 or smaller public companies in transactions negotiated directly with such companies. Given market conditions over the
past several years and the performance of our portfolio, our management and board of directors believe it prudent to continue to
review alternatives to refine and further clarify the current strategies.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Equus is a closed-end management investment
company that has elected to be treated as a business development company (&ldquo;BDC&rdquo;) under the Investment Company Act of
1940 (&ldquo;1940 Act&rdquo;). In order to remain a BDC, 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 700
Louisiana St., 48<SUP>th</SUP> Floor, Houston, Texas, 77002, 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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Plan of Reorganization and Share
Exchange with MVC Capital</I>. On May 14, 2014, we announced that the Fund intended to effect a reorganization pursuant to Section
2(a)(33) of the 1940 Act. As a first step to consummating the reorganization, we sold to MVC Capital, Inc. (&ldquo;MVC&rdquo;)
2,112,000 newly-issued shares of the Fund&rsquo;s common stock in exchange for 395,839 shares of MVC (such transaction is hereinafter
referred to as the &ldquo;Share Exchange&rdquo;). MVC is a business development company traded on the New York Stock Exchange that
provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety
of industries. The Share Exchange was calculated based on the Fund&rsquo;s and MVC&rsquo;s respective net asset value per share.
At the time of the Share Exchange, the number of MVC shares received by Equus represented approximately 1.73% of MVC&rsquo;s total
outstanding shares of common stock.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Pursuant to the terms of a
Share Exchange Agreement, dated May 12, 2014, entered into by Equus and MVC which memorialized the Share Exchange, we intend
to finalize the reorganization by pursuing a merger or consolidation with MVC, a subsidiary of MVC, or one or more
of MVC&rsquo;s portfolio companies (the &ldquo;Consolidation&rdquo;). Absent Equus merging or consolidating with/into MVC or
a subsidiary thereof, our current intention is for Equus to (i) consummate the Consolidation with a portfolio company of MVC, (ii)
terminate its election to be classified as a BDC under the 1940 Act, and (iii) be restructured as a publicly-traded
operating company focused on the energy and/or financial services sector. Our original intention was to consummate the
Consolidation within one year from the date of our announcement, although actual completion may require additional time.</P>


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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><I>Disposals of Portfolio Investments</I>. During 2014 and
shortly thereafter, we disposed of the following portfolio investments:</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="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 55pt; text-align: right"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On April 3, 2014, we sold our
remaining 73,666 shares of Orco Property Group S.A. (&ldquo;OPG&rdquo;), wherein we received $61,867 in net cash proceeds;</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: right; width: 55pt">&bull;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On November 20, 2014, we received a
                                                                                  payment in partial redemption of our notes issued by OPG (&ldquo;OPG Notes&rdquo;) in the amount of &euro;209,706
                                                                                  [$261,077];</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 60.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: right; width: 55pt"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On January 6, 2015, we sold
our interest in Spectrum Management, L.L.C. (&ldquo;Spectrum&rdquo;) in exchange for $3.0 million in cash and a 1-year secured
subordinated 14% promissory note in the principal amount of $914,509;</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 60.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 55pt; text-align: right"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On January 6, 2015, our debt
investment in Security Monitor Holdings, LLC was repaid, wherein we received $582,833 in cash, which included the original principal
amount of the debt and all interest, as accrued; and</FONT></TD>
</TR></TABLE>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 60.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 55pt; text-align: right"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">On February 20, 2015, we sold
our OPG Notes for &euro;846,059 [$953,117] in net cash proceeds.</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">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 remaining 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.</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>Investment Objective </B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">To the extent we remain as a
BDC and do not complete the Consolidation with MVC or one of its portfolio companies as described above, 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; text-indent: 0.5in">&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 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: 0.5in">&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; text-indent: 0.5in">&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, our 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; text-indent: 24.5pt"><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; text-indent: 24.5pt">&nbsp;</P>

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


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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><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 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/115% Times New 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>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; text-indent: 0.5in">&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; text-indent: 0.5in">&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 CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Review of historical and
prospective financial information including audits and budgets;</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">On-site visits;</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Interviews with management,
employees, customers and vendors of the potential portfolio company;</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Review of existing loan
documents, if any;</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; margin-top: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Background checks on members
of management; and</FONT></TD>
</TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt/115% 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; text-indent: 24.5pt">&nbsp;</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: 0.5in"><B></B></P>

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<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"><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; text-indent: 0.5in"><B>&nbsp;</B></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; text-indent: 0.5in"><B>&nbsp;</B></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; text-indent: 0.5in"><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; text-indent: 0.5in"><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">Our Management 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. Management would then present its fair value recommendations to the Audit Committee of the
Board of Directors for review. Following review and any adjustments required thereby, the Audit Committee would, in turn, recommend
the fair values for all of the Fund&rsquo;s portfolio investments 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>


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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">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>

<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; text-indent: 0.5in"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Competition<I> </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; text-indent: 0.5in"><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 700 Louisiana St., 48<SUP>th</SUP> Floor, Houston, Texas 77002. 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; text-indent: 0.5in"><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; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: right; width: 35pt"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Securities</FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">
</FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><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: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><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">&nbsp;</P>


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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-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. Pursuant to the Plan of Reorganization announced on May 14, 2014, we
intend to: (i) consummate a consolidation with MVC or one of its subsidiaries, (ii) terminate the Fund&rsquo;s election to be classified
as a BDC under the 1940 Act, and (iii) be restructured as a publicly-traded operating company focused on the energy and/or financial
services sector. Any or all of these intended developments will require an affirmative vote of the holders of a majority of our
outstanding voting securities (see <I>Significant Developments&minus;Plan of Reorganization</I> above).</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">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">&nbsp;</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; text-indent: 0.5in"><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 &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 </P>


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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">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>

<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; text-indent: 0.5in"><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; text-indent: 0.5in"><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 2014, 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; text-indent: 0.5in"><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">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</P>


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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a_003"></A><B>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>

<P STYLE="font: 10pt/normal Times New 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">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; text-indent: 0.5in"><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 CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><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></TABLE>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 0 45pt; text-indent: 0.5in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><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></TABLE>

<P STYLE="font: 10pt/0 Times New Roman, Times, Serif; margin: 0 0 0 45pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><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></TABLE>

<P STYLE="font: 10pt/0 Times New Roman, Times, Serif; margin: 0 0 0 45pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right">&bull;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><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></TABLE>

<P STYLE="font: 10pt/0 Times New Roman, Times, Serif; margin: 0 0 0 45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right"><FONT STYLE="font: 11pt Times New Roman, Times, Serif">&bull;</FONT></TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><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></TABLE>

<P STYLE="font: 10pt/0 Times New Roman, Times, Serif; margin: 0 0 0 45pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right">&bull;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><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. For investments that are not listed on a securities exchange or quotation medium,
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>


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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"></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 our 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"><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, 2014, 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, 2014, the cost
basis of our portfolio investments was $23.2 million and our estimated fair value was $19.6 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">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>Our holdings in Equus Energy are
subject to commodity price declines endemic to oil and gas 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 oil and gas business is fundamentally
a commodity-based enterprise. This means that the operations and earnings of Equus Energy may be significantly affected by changes
in prices of oil, gas and natural gas liquids. The prices of these products are also dependent upon local, regional and global
events or conditions that affect supply and demand for the relevant commodity. In addition, the pricing of these commodities are
highly dependent upon technological improvements in energy production and development, energy efficiency, and seasonal weather
patterns. Moreover, as a worldwide commodity, the price of oil and natural gas is also influenced by changes in currency exchange
rates, interest rates, and inflation. Equus Energy does not employ any hedging strategies in respect of its oil and gas holdings,
and is therefore subject to price fluctuations resulting from these and other factors. The operational results and financial condition
of Equus Energy, as well as the economic attractiveness of future capital expenditures for new drilling and recompletions, may
be materially adversely affected as a result of lower oil and gas prices.</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>

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

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


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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-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>

<P STYLE="font: 10pt/normal Times New 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 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 2010 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 $38.0
million as of December 31, 2010 to $36.2 million as of December 31, 2014. Moreover, we have had net investment losses in four out
of the past five years, with a net investment loss of $2.4 million for the year ended December 31, 2014. 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>


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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-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 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 have a particularly
adverse effect upon small and medium-sized companies, 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>


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<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/normal Times 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>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></I></B></P>

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<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>

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


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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-indent: 24.5pt"><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, 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.</FONT></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; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>Risks Related to Our Announced Plan of Reorganization</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>If we reorganize as an operating
company, we will likely 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"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On May 14, 2014, we announced that we
had adopted a Plan of Reorganization within the meaning of Section 2(a)(33) of the 1940 Act. The Plan of Reorganization contemplates
the possible merger of the Fund with and into another BDC, or the restructuring of the Fund as an operating company no longer subject
to the 1940 Act. If we were to reorganize as an operating company, we may lose our status as a RIC. If we fail to qualify as a
RIC, we will be subject to corporate income tax, which would substantially reduce the amount of income we might otherwise distribute
to our shareholders (see <I>&ldquo;Significant Developments&mdash;Plan of Reorganization&rdquo;</I> 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>If we reorganize as an operating
company, we will not continue to operate as a BDC.</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">We have elected to be classified
as a BDC under the 1940 Act. In connection with our announcement on May 14, 2014 to effect a Plan of Reorganization, if we
effect a reorganization of the Fund into an operating company, we will seek to terminate our BDC classification. If we were
to terminate our election to be classified as a BDC and were still determined by the SEC to constitute an &ldquo;investment
company,&rdquo; we would be subject to significantly greater regulatory requirements and constraints than under those which
we presently operate, the result of which could have a material adverse effect on our results and financial condition.</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>If we reorganize as an operating
company, we may not be able to utilize our capital losses.</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">As of December 31, 2014, we have incurred
cumulative capital losses of $31.8 million, of which $15.6 million will begin expiring after <FONT STYLE="background-color: White">2017</FONT>,
with the remainder carried over indefinitely. Pursuant to the Plan of Reorganization announced on May 14, 2014, we may reorganize
as an operating company. If we reorganize as an operating company, we may lose our ability to offset future income against our
cumulative capital losses, including capital losses that would otherwise continue past <FONT STYLE="background-color: White">2017</FONT>.
If we reorganized as an operating company and were unable to offset future income against these capital losses, the result could
have a material adverse effect on our future operating results and our financial condition.</P>

<P STYLE="font: 10pt/normal Times New 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>If we do not consummate the Consolidation and reorganize
as an operating company, MVC could require us to repurchase their Equus shares.</I></B></P>

<P STYLE="font: 11pt/115% Times New Roman, Times, Serif; margin: 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Pursuant to the Plan
of Reorganization we announced on May 14, 2014, we completed a Share Exchange with MVC, wherein we issued 2,112,000 shares of
our common stock in exchange for 395,839 shares of MVC. Our intention is to consummate a Consolidation with MVC or one or
more of its portfolio companies within a year from the date of this announcement, although actual completion may require
additional time. If, however, we do not complete the Consolidation within a time frame agreed with MVC, it could require us
to repurchase the Equus shares issued as part of the Share Exchange by returning to them all of the MVC shares we hold. A
rescission of the Share Exchange, if effected by MVC, could have a material adverse effect on our financial
condition and results of operations.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27.35pt 0 0; text-indent: 0.5in"></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 27.35pt 0 0; text-indent: 0.5in"></P>


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<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 27.35pt 0 0"></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 27.35pt 0 0"><B><A NAME="a_004"></A>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"><B><A NAME="a_005"></A>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 700 Louisiana St. 48<SUP>th</SUP> Floor, Houston, Texas 77002.
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; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="background-color: White"><A NAME="a_006"></A><B>Item 3. <I>Legal
Proceedings</I></B></FONT></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 Settlement</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 Texas state court, which was subsequently consolidated into an Arbitration
Action, against two former officers of Champion, Equus, and another former Champion shareholder. The suit alleged breaches of fiduciary
duty against Champion&rsquo;s former officers for hiring undocumented workers that were discovered as a result of an investigation
by the U.S. Immigration and Customs Enforcement agency (&ldquo;ICE&rdquo;) into Atrium&rsquo;s hiring practices. The suit also
sought indemnification under the SPA from these officers, Equus, and another former Champion shareholder, for a payment of $2.0
million made to ICE in settlement of the investigation and associated legal costs, as well as for claimed lost profits as a result
of the investigation.</P>

<P STYLE="font: 10pt/normal Times New 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 February 4, 2015, without admitting
to any liability on the part of Equus&nbsp;, we entered into a settlement agreement with Atrium and its associated companies. 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, we agreed to pay $500,000, in complete settlement of the lawsuit, as being in the best interests of the Fund and its
shareholders. The settlement payment was made on February 6, 2015. Atrium filed a motion to dismiss the lawsuit with prejudice
on February 4, 2015.</P>

<P STYLE="font: 10pt/normal Times New 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: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B STYLE="font-style: normal; font-weight: normal">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.</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"><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/115% Times New Roman, Times, Serif; margin: 0 0 10pt">&nbsp;</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; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 27pt 0 0"><A NAME="a_009"></A><B>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 2,600 stockholders as of December 31, 2014,
737 of whom were registered holders. Registered holders do not include those stockholders whose stock has been issued in street
name. As of December 31, 2014, our net asset value was $2.86 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, 2014, 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: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 22.3pt 0 0"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&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">2014</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">2013</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">Q1</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">Q2</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">Q3</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">Q4</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">Q1</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">Q2</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">Q3</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">Q4</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 28%; font-weight: bold">High</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.05</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.33</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.48</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.20</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.40</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">Low</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.74</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.95</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.15</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.97</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.86</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.82</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.67</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">NAV</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.09</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.97</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.86</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.97</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.86</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.78</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.14</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left">Dividends Declared</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 22.3pt 0 0"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B></B></FONT></P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 22.3pt 0 0"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B></B></FONT></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>


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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><A NAME="a_010"></A><B></B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>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, 2014 (in thousands, except per share data):</P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; color: Red">&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>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</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></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 45%; text-align: left">Total investment income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">965</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; 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">$</TD><TD STYLE="width: 8%; text-align: right">516</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; 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: 8%; text-align: right">2,904</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">&nbsp;</TD><TD STYLE="text-align: right">(2,418</TD><TD STYLE="text-align: left">)</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(770</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 realized gain (loss) of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">660</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">(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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7</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">&nbsp;</TD><TD STYLE="text-align: right">391</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,266</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">177</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,901</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,073</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">&nbsp;</TD><TD STYLE="text-align: right">(1,367</TD><TD STYLE="text-align: left">)</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">(4,529</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,850</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52,038</TD><TD STYLE="text-align: left">&nbsp;</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">44,301</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">53,454</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 assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">36,201</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">33,217</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">32,875</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,148</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">38,051</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net cash (used in) provided by operating activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,367</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(19,662</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,599</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;</TD><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">Shares outstanding at end of year</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12,674</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">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></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">11,904</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">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></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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="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">2014</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">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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net investment loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.20</TD><TD STYLE="text-align: left">)</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net realized gain (loss) of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.06</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</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></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">&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">1.26</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.02</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.99</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1.36</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">&nbsp;</TD><TD STYLE="text-align: right">(0.11</TD><TD STYLE="text-align: left">)</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">(0.45</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net asset value (including unrealized appreciation)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.86</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.14</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.11</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.61</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.29</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



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

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; color: Red"><B>&nbsp;</B></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; text-indent: 0.5in"><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; 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 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>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-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 2014, we incurred non-recurring expenses, including settlement expenses of $0.5 million, and legal expenses of $0.1
million related to the various legal proceedings described in Item 3 above. 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.</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, 2014, we had invested 51.4% of our net assets
in securities of portfolio companies that constituted qualifying investments under the 1940 Act. At that time, we had invested
13.6% by value in shares of common stock, 27.7% in membership interests in limited liability companies, and 13.0% 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"><I>Commitments.</I> Under certain circumstances,
we make follow-on investments in some of our portfolio companies. As of December 31, 2014, 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 2014 and 2013, 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 2015.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 22.5pt 0 0; text-indent: 0.5in"><B>&nbsp;</B></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">We follow the accounting and reporting
guidance in FASB Accounting Standards Codification 946. 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"><FONT STYLE="font-style: normal"><B>Valuation
of Investments</B><FONT STYLE="font-weight: normal">&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:</FONT></FONT></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>



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<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,
2014, these securities, consisting of our holdings in the OPG Notes, represented 5.3% 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 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"></P>


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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-indent: 24.5pt">Because of the inherent uncertainty
of the valuation of portfolio securities which do not have readily ascertainable market values, amounting to $15.7 million and
$13.3 million as of December 31, 2014 and 2013, 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, 2014, one of our portfolio investments,
404,968 common shares of MVC was publicly listed on the NYSE and our holding of &euro;1,200,790 [$1.5 million] in OPG notes was
publicly listed on the Luxembourg Stock Exchange. As of December 31, 2013, the 73,666 ordinary shares of OPG were publicly listed
on the NYSE Euronext Paris Exchange, and our holding of &euro;1,200,790 [$1.5 million] in Notes was listed on the Luxembourg Stock
Exchange. On April 3, 2014, we sold all of our 73,666 remaining shares of OPG, wherein we received $61,867 in net proceeds and
reported a realized loss of $0.06 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">We adjust our net asset value for the
changes in the value of our publicly held securities, if applicable, and material changes in the value of private securities, generally
determined on a quarterly basis or as announced in a press release, and report those amounts to Lipper Analytical Services, Inc.
Our net asset value appears in various publications, including <I>Barron&rsquo;s </I>and <I>The Wall Street Journal</I>.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><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, 2014, we had
a capital loss carry forward of <FONT STYLE="background-color: White">$31.9</FONT> 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"><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: 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 were  effective for the Fund beginning in the first quarter of 2014. Our adoption of ASU 2013-08 did not effect our
financial position or results of operations.</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"><B><I>Current Market Conditions</I></B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Overall economic conditions in the United
States have improved, albeit slowly, since the market downturn of 2008-09. The U.S. economy grew at 2.43% in 2014, and the International
Monetary Fund is forecasting higher growth in 2015 (3.5%). However, global growth for 2015 is predicted at 3.5%, largely driven
by growth in the U.S. and Asia, with the Euro zone predicted to grow at only 1.2%. (Sources: <I>Forbes</I> and <I>Newsweek</I>)</P>


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

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<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">Market conditions for business transactions
including mergers and acquisitions and private equity investments improved to their highest level since prior to the 2008 financial
crisis, as corporations have been deleveraging and are holding significant amounts of cash and many have focused on acquisitions
as part of future growth plans. Private equity activity increased 47% from 2013 to 2014, as private equity firms as a group enjoyed
more success during the year in monetizing their investments through sales and public listings. (Sources: <I>USA Today</I> and
<I>Fortune</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">During 2014, our net asset value decreased
from $3.14 per share to $2.86 per share, a decrease of 8.9%. As of December 31, 2014, our common stock is trading at a 26.5% discount
to our net asset value as compared to 36.6% 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">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; text-indent: 0.5in"><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 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 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, 2014</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, 2014, we had total
assets of $52.0 million, of which $19.6 million were invested in portfolio investments and $15.7 million were invested in cash
and cash equivalents. Among our portfolio investments, $4.7 million (at fair value) or 12.9% of net asset value were in the form
of notes receivable from portfolio companies as of December 31, 2014. We continue to classify the promissory
note issued by Spectrum,  $3.2 at million (fair value), as non income producing.</P>

<P STYLE="font: 10pt/normal Times New 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, 2014, we also had
$15.1 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 $0.1 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
2, 2015 and we subsequently repaid this margin loan. The margin interest was paid on February 4, 2015.</P>

<P STYLE="font: 10pt/normal Times New 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
$3.4 million in cash for operating activities in 2014. In 2014, we made investments in portfolio companies of $0.8 million and
paid fees to our professional advisers, directors, banks and others of $2.5 million, while realizing a gain of $0.7 million from
the disposition of portfolio securities. During 2014, we incurred non-recurring expenses including settlement expenses of $0.5
million and legal expenses of $0.1 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 used
$0.001 million in cash from financing activities for 2014. We did not declare any dividends in 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"><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 classify the promissory
note issued by Spectrum, $2.9 million (at fair value), as non income producing.</P>


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


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<P STYLE="font: 10pt/0 Times New Roman, Times, Serif; margin: 0"></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. 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 professional 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 professional 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">&nbsp;</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, 2014 as
compared to 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">Total income from portfolio
securities increased $1.0 million in 2014 due to a reversal of prior impairments of interest receivable from Spectrum of $0.7
million and the increase in interest-bearing investments resulting in additional interest/dividend income 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">Professional fees increased to $1.1
during 2014 from $1.0 million during 2013. These increases were due to the increases 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
comparable from 2013 to 2014, and was $0.9 million in each of the years.</P>

<P STYLE="font: 10pt/normal Times New 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">General and administrative
expenses increased by $0.2 million in 2014 from 2013, largely due to increased travel expenses in connection with prospective
investments and the Fund&rsquo;s announced Plan of Reorganization (<I>see &ldquo;Significant Developments&mdash;Plan of Reorganization&rdquo;
above</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">Settlement expense was $0.5 million
for both 2014 and 2013 and 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 $2.4 million for 2014 as compared to a net investment loss of $3.1 million for 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"></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 million during 2013 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>



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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-indent: 24.5pt">Compensation expense was $0.9 million
for 2013 and $1.1 million for 2012, respectively.&nbsp; The $0.2 million decrease was largely due to a decrease in bonuses paid
in 2013 compared to 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">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>&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, 2014</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,
2014, we capitalized legal and consulting expenses of $0.3 million relating to Spectrum Management. We also received a
semi-annual interest payment of $0.06 million in cash and $0.2 million in the form of PIK&rsquo;d interest in respect of our
&euro;1.2 million [$1.5 million] in OPG notes. On May 14, 2014, we sold to MVC 2,112,000 newly-issued shares of the
Fund&rsquo;s common stock in exchange for 395,839 shares of MVC (see <I>&ldquo;Significant Events&minus;Plan of Reorganization&rdquo;</I>
above). During the year ended December 31, 2014, we also received 9,129 shares of MVC in the form of dividend payments.</P>

<P STYLE="font: 10pt/normal Times New 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, 2014 (in thousands):</P>

<P STYLE="font: 10pt/normal Times New 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="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">MVC Capital, Inc.</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">524</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,075</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">107</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">5,706</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Orco Property Group</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">171</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">171</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">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">269</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">269</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; 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">524</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,075</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">269</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">278</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6,146</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



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

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="15" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Investment Activity</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: right; line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="7" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>New Investments</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="7" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Existing Investments</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: right; line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Portfolio Company</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Cash</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Non-Cash</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Follow-On</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>PIK</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Total</b></font></td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: right; line-height: 115%">&nbsp;</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Security Monitor Holdings, LLC</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">500</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">500</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Spectrum Management, LLC</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">310</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">310</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">500</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">310</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">810</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, 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>

<P STYLE="font: 10pt/normal Times New 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 originally invested in the bonds
of Orco Germany S.A. in April 2011. On May 7, 2012, holders of 72.5% of all Orco Germany bonds approved a joint restructuring of
certain bond debt of Orco Germany 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 we</P>



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<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B STYLE="font-style: normal; font-weight: normal"><I></I>received 1,102,455 OPG shares. The second
tranche, consisting of 7,848,073 OPG shares, was delivered in October 2012, of which we received 471,211 OPG shares. Also in October
2012, the remaining 15.5% of the Orco Germany bonds held by each bondholder was converted into 6-year OPG Notes with a face value
of &euro;20.0 million bearing cash and PIK interest each at 5% per annum. Of the total amount of OPG Notes issued, we 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.</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 had investment activity of $7.2 million in three portfolio companies. We made a follow-on investment of $6.8 million in Equus
Energy. 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="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td colspan="15" style="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Investment
    Activity</B></FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td colspan="3" style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom">
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td colspan="7" style="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>New
    Investments</B></FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td colspan="7" style="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Existing
    Investments</B></FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td colspan="3" style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Portfolio
    Company</B></FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Cash</B></FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Non-Cash</B></FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Follow-On</B></FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>PIK</B></FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B>Total</B></FONT></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="font-size: 11pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Equus Energy, LLC</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">$</FONT></td>
    <td style="text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">$</FONT></td>
    <td style="text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">$</FONT></td>
    <td style="text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">6,800</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">$</FONT></td>
    <td style="text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">$</FONT></td>
    <td style="text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">6,800</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="width: 40%; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Orco Property
    Group S.A.</FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 9%; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 9%; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 9%; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 9%; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">301</FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="width: 9%; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">301</FONT></td>
    <td style="width: 1%; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="font-size: 11pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Spectrum Management,
    LLC</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">139</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 1pt solid; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">139</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="padding-left: 5.4pt; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">$</FONT></td>
    <td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="padding-left: 5.4pt; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">$</FONT></td>
    <td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">&mdash;
    </FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="padding-left: 5.4pt; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">$</FONT></td>
    <td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">6,939</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="padding-left: 5.4pt; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">$</FONT></td>
    <td style="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">301</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="padding-left: 5.4pt; font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></td>
    <td style="border-bottom: black 2.25pt double; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">$</FONT></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">7,240</FONT></td>
    <td style="font-size: 12pt; line-height: 115%"><FONT STYLE="font-size: 10pt">&nbsp;</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"><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, 2014</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 2014, we realized capital gains
of $0.7 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 CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<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">Type</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left; border-bottom: Black 1pt solid; vertical-align: bottom">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"><P STYLE="margin-top: 0; margin-bottom: 0">Realized Gain</P>
                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">(Loss)</P></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 STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">Non-affiliate</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Disposition</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(63</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">MVC Capital, Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Financial services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">Non-affiliate</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Share exchange</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">724</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">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 STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&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">(1</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Helv; text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font-family: Helv; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Helv; text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font-family: Helv; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Helv; text-align: left">&nbsp;</TD><TD STYLE="font-family: Helv; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Helv; text-align: left">&nbsp;</TD><TD STYLE="font-family: Helv; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Helv; 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">660</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-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: 9pt/normal Sans-Serif; margin: 0 0 0 24.5pt; color: Red"><B></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Portfolio Company</b></font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Industry</b></font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Type</b></font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: left; line-height: 115%; vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"><b>Transaction Type</b></font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Realized Gain (Loss)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">The Bradshaw Group</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Business products and services</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Non-affiliate</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Disposition</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(1,795</font></td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Infinia Corporation</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Alternative energy</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Non-affiliate</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Disposition</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(8,000</font></td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(9,795</font></td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td>
    <TD>&nbsp;</td></tr>
</table>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I></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"><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: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Portfolio Company</b></font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Industry</b></font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Type</b></font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: left; line-height: 115%; vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"><b>Transaction Type</b></font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Realized Gain (Loss)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">ConGlobal Industries Holding, Inc.</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Shipping products and services</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Control</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Disposition</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(4,114</font></td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Sovereign Business Forms, Inc.</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Business products and services</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Control</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Disposition</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(1,073</font></td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Orco Property Group</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Real estate</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Non-affiliate</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Disposition</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,318</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Various others</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Disposition</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">72</font></td>
    <TD STYLE="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</td>
    <TD STYLE="line-height: 115%">&nbsp;</td>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(2,797</font></td>
    <TD STYLE="line-height: 115%"><font style="font: 10pt 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"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: italic bold 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
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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"><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, 2014</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 2014, we recorded a
net decrease in unrealized depreciation of $0.3 million, to arrive at a net unrealized depreciation of $3.6 million as
of December 31, 2014. 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="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 4%; padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(i)</font></td>
    <td style="width: 1%; padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; width: 95%"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase
in fair value of our holding in Equus Energy of $1.8 million due to an increase in comparable transactions for mineral leases,
increased oil and gas production, as well as additional proved developed producing and proved developed producing behind-pipe
reserves from new drilling and recompletion activities;</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; text-align: right; line-height: 115%">(ii)</TD>
    <TD STYLE="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><P STYLE="margin-top: 0; margin-bottom: 0">Decrease in fair value of Equus Media Development Company, LLC of $0.1 million due to a net operating loss for the period equal to the amount of the decrease;</P>
                                                                           <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P></TD></TR>

<tr style="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(iii)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Decrease
in fair value of MVC of $1.7 million due to the decline in the stock price of MVC;</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; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(iv)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Decrease
in fair value of our holding of OPG Notes of $0.1 million due to adverse changes in the USD-EUR exchange rate; 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; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(v)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">Increase in fair value of our shareholding in PalletOne, Inc. of $0.7 million due to an improvement in the industry sector for packaging companies and continued revenue and earnings growth.</font></td></tr>
</table>

<P STYLE="margin-top: 0; margin-bottom: 0"><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 arrive at a net unrealized depreciation of $3.9 million as of
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>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 4%; padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(i)</font></td>
    <td style="width: 1%; padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="width: 95%; padding-left: 0">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">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;</P>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(ii)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><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><FONT STYLE="font-size: 10pt"></FONT></P>
                                                                           <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(iii)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="padding-left: 0">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Increase in the fair value of Equus Energy of $1.1 million
        due improved operational results and an increase in proved developed producing reserves;</P>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(iv)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="padding-left: 0">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">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</P>
        <P STYLE="font: 10pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(v)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="padding-left: 0; line-height: 115%"><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: 0.5in"></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 2012, we recorded a
net change in unrealized depreciation of $0.2 million, to arrive at a net unrealized depreciation of $17.2 million as of
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="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(i)</font></td>
    <td style="width: 1%; padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="width: 94%; padding-left: 0">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Transfer of unrealized depreciation to realized loss of our
        holdings in ConGlobal of $1.6 million upon the divestiture of the investment;</P>
        <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(ii)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="padding-left: 0">
        <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">Transfer of unrealized depreciation to realized loss of our
        holdings in Sovereign of $0.6 million upon the divestiture of the investment;</P>
        <P STYLE="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(iii)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="padding-left: 0">
        <P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0">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</P>
        <P STYLE="font: 10pt/115% Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(iv)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="padding-left: 0; line-height: 115%"><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: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B></B></P>

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

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

<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-indent: 24.5pt">As of December 31, 2014, 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 132 producing and non-producing oil and gas wells, including associated development rights of approximately
21,620 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 production improvements and the increase in proved developed producing or proved developed producing behind-pipe
reserves, all of which offset price declines in crude and natural gas during the year, the fair value of this holding increased
to approximately $9.8 million at December 31, 2014 from $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, 2014 and 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">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B><I>MVC Capital, Inc.</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: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">MVC
is a business development company traded on the New York Stock Exchange that provides long-term debt and equity investment capital
to fund growth, acquisitions and recapitalizations of companies in a variety of industries. On May 14, 2014, we sold to MVC 2,112,000
newly-issued shares of the Fund&rsquo;s common stock in exchange for 395,839 shares of MVC. (see <I>&ldquo;Significant Events</I>&minus;<I>Plan
of Reorganization&rdquo;</I> above) </FONT> <FONT STYLE="font: 10pt Times New Roman, Times, Serif">During 2014, we received 9,129 additional
shares in the form of a dividend payments and recorded accrued dividends receivable of $54,401 at December 31, 2014. As of December
31, 2014, we have valued the 404,968 MVC shares, based on the closing trading price of $9.83 on the NYSE, at $4.0 million.</FONT></P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 24.5pt"></P><P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-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">OPG is a commercial and multi-family
residential real estate holding company based in Paris. In April 2011, we acquired 8,890 bonds of Orco Germany S.A., then a controlled
subsidiary of OPG. In 2012, our Orco Germany bonds were converted into 1,573,666 ordinary shares of OPG and &euro;1.2 million [$1.5
million] in 6-year 10% notes of OPG paying 5% PIK interest and 5% cash. We sold 1,500,000 of our OPG shares in October 2012 and
the remaining 73,666 OPG shares in April 2014. In October 2014, the OPG notes were restructured to provide for an interest payment
of 7% in cash and an extension of the maturity date to October 2019. During the fourth quarter of 2014, we received &euro;222,063
[$276,460] in interest and redemption payments in respect of the OPG notes, and on February 20, 2015, we sold the OPG notes for
net proceeds of &euro;846,059 [$953,117]. As of December 31, 2014, we valued this investment at approximately $1.0 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</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/0 Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0">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 19%. Due to improved operating performance, we valued our interest
in PalletOne as of December 31, 2014 at $1.0 million.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><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. On November 7, 2013, SMH issued Equus
a promissory note in the principal amount of $0.5 million, which was secured by a mortgage against certain real property, together
with a personal guarantee of the principal of SMH. The note issued by SMH to Equus in exchange for the loan originally had a six
month term which was subsequently extended to coincide with the sale of the Fund&rsquo;s interest in Spectrum Management, LLC in
January 2015. The note bore interest at 14% per annum.&nbsp; On January 6, 2015, in connection with the sale of the Fund&rsquo;s
interest in Spectrum described below, the SMH loan, together with all accrued interest, was repaid in full. As of December
31, 2014, we valued the SMH loan at its original investment amount of $0.5 million.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><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">As of December 31, 2014, Equus controlled
approximately 82.5% of Spectrum&rsquo;s voting securities, had a senior subordinated working capital advance of $0.6 million, a
preferred subordinated note $0.8 million, and a subordinated note of $1.7 million (total face amount of $3.0 million). On January
6, 2015, we sold our interests in Spectrum to 5th Element Tracking, LLC (&ldquo;5th Element&rdquo;), a Boston-based technology
company. The purchase price of $3.9 million paid by 5th Element consisted of $3.0 million in cash and a 1-year subordinated note
in the original principal amount of $0.9 million, bearing interest of 14% per annum. Given the transaction&rsquo;s time proximity
to year-end and the negotiations which preceded the sale, we increased the fair value of our holdings in Spectrum as of December
31, 2014 to $3.2 million.</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 9pt 0 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Off
Balance Sheet Arrangements</B></FONT><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">We had an operating lease for
office space that expired in September 2014. Our current office space lease as of December 31, 2014 is month-to-month. The
lease contained a provision for certain annual rental escalations. Rent expense under the operating lease agreement is
inclusive of common area maintenance costs was $61,000, $85,000 and $84,000 for each of the years ended December 31, 2014,
2013 and 2012, respectively.</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>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">As of December 31, 2014, 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">&nbsp;</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">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: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>Subsequent Events </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 events:</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, 2015, we sold U.S. Treasury Bills for $15.0 million and repaid our year-end margin loan</FONT>.</P>

<P STYLE="font: 10pt/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; text-indent: 24.5pt">On January 6, 2015, we sold our interests
in Spectrum to 5th Element as described under &ldquo;<I>Portfolio Securities</I>&rdquo; above. The purchase price of $3.9 million
paid by 5th Element consisted of $3.0 million in cash and a 1-year subordinated note in the original principal amount of $0.9 million,
bearing interest of 14% per annum.</P>

<P STYLE="font: 10pt/normal Times New 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 6, 2015, in connection with
the sale of our interest in Spectrum, our $0.5 million loan to SMH, together with all accrued interest amounting to approximately
$0.1 million, was repaid in full.</P>



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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-indent: 24.5pt">On January 30, 2015, we received a partial
redemption payment in respect of our holding of OPG Notes in the amount of &euro;36,587 [$41,478].</P>

<P STYLE="font: 10pt/normal Times New 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 February 4, 2015, we entered into
a settlement agreement with Atrium Companies, Inc. (&ldquo;Atrium&rdquo;) and its subsidiary Champion Window, Inc. 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, we agreed to pay $500,000, in complete settlement of a lawsuit commenced against the Fund by Atrium. The settlement
payment was made on February 6, 2015 (see <I>&ldquo;Legal Proceedings&minus;Champion Window Arbitration Settlement&rdquo;</I> above).</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On February 20, 2015, we sold our OPG
Notes at a discount of 23% to their par value, receiving $953,117 in cash.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><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 notes issued by OPG, 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/115% 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 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 27.1% of our net asset value, 18.8% of our total assets and 49.9% of our investments in portfolio company securities (at
fair value) as of December 31, 2014. Changes in business or industry trends or in the financial condition, results of operations,
or the market&rsquo;s assessment of any single portfolio company will affect the net asset value and the market price of our common
stock to a greater extent than would be the case if we were a &ldquo;diversified&rdquo; company holding numerous investments.</P>

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

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


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<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_013"></A>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; text-indent: 0.5in"><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>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; text-indent: 0.5in"><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; text-indent: 0.5in"><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 sheet of Equus Total Return, Inc. (a Delaware corporation) (the &ldquo;Fund&rdquo;),
including the schedule of investments, as of December 31, 2014 and the related statements of operations, changes in net
assets and cash flows for  the year ended December 31, 2014 and the selected per share data and ratios for the year ended December 31, 2014. 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 audit.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><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 audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit 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, 2014 or by other
appropriate auditing procedures where replies were not received. 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 audit provides a reasonable basis for our opinion.</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><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, 2014 and the results of its operations
and its cash flows for the year ended December 31, 2014 and the selected per share data and ratios
for the year ended December 31, 2014, 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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">/s/ BDO USA, 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 <FONT STYLE="background-color: White">30</FONT>, 2015</P>

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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.1pt"><B>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; text-indent: 0.5in"><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>

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<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 sheet of Equus Total Return, Inc. (a Delaware corporation) (the &ldquo;Fund&rdquo;),
including the schedule of investments, as of December 31, 2013 and the related statements of operations, changes in net
assets and cash flows for  each of the two  years in the period ended December 31, 2013 and the selected per share data and
ratios for each of the four 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; text-indent: 0.5in"><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 audit 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 audits 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 such 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; text-indent: 0.5in"><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 the results of
its operations and its cash flows for each of the two years in the period ended December 31, 2013 and the selected per share
data and ratios for each of the  four 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; text-indent: 0.5in">&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/normal Times New Roman, Times, Serif; margin: 0">&nbsp;</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>BALANCE SHEETS </B></P>

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

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B></B></FONT></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="7" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">2014</P></TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">2013</P></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: 70%; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments (cost at $16,058 and $15,789 respectively)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">13,173</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: 12%; text-align: right">11,105</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">960</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments - related party (cost at $5,706 and $0
    respectively)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,981</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;&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;Non-affiliate investments (cost at $1,097 and
    $1,321 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">1,532</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,149</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments in portfolio securities at fair value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,646</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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">15,697</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">15,149</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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">614</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accrued interest receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">764</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accrued dividend receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">54</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;&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">Accounts receivable and other</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">114</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: 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">52,038</TD><TD STYLE="text-align: left">&nbsp;</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></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">664</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">106</TD><TD STYLE="text-align: left">&nbsp;</TD></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">174</TD><TD STYLE="text-align: left">&nbsp;</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></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">14,999</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">15,000</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">15,837</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Commitments and contingencies (see Note 6)</TD><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">36,201</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">33,217</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net assets consist of:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">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">56,049</TD><TD STYLE="text-align: left">&nbsp;</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></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">(16,956</TD><TD STYLE="text-align: left">)</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undistributed net capital gain</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">660</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;&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;Unrealized depreciation of portfolio securities, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,840</TD><TD STYLE="text-align: left">)</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></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 - related party, 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">(1,725</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;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&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">36,201</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">33,217</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">12,674</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">2.86</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">3.14</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B></B></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

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

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

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

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

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 0.5in"><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-top: 0; text-align: center; margin-bottom: 0"><B>EQUUS TOTAL RETURN, INC.</B></P>

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

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

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B></B></FONT></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-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">(in thousands, except per share amounts)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2014</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></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 and dividend 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: 58%; 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">$</TD><TD STYLE="width: 11%; text-align: right">580</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(166</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">358</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">&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;&nbsp;&nbsp;&nbsp;Non-affiliate investments - related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">161</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="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">224</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">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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total interest and dividend income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">965</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest from temporary cash investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&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">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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment income</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">965</TD><TD STYLE="text-align: left">&nbsp;</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></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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">1,067</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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">937</TD><TD STYLE="text-align: left">&nbsp;</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></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">414</TD><TD STYLE="text-align: left">&nbsp;</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></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">293</TD><TD STYLE="text-align: left">&nbsp;</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></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">147</TD><TD STYLE="text-align: left">&nbsp;</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></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">25</TD><TD STYLE="text-align: left">&nbsp;</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></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">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2</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></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">500</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">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></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">3,383</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">3,136</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></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">(2,418</TD><TD STYLE="text-align: left">)</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></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">&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">(1,795</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></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">&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;Non-affiliate investments - related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">724</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(63</TD><TD STYLE="text-align: left">)</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></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;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">)</TD><TD STYLE="padding-bottom: 1pt">&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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain (loss)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">660</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">(2,797</TD><TD STYLE="text-align: left">)</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>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net unrealized depreciation of portfolio securities:</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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,840</TD><TD STYLE="text-align: left">)</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(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><TD STYLE="padding-bottom: 1pt">&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></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 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">2,116</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">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></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 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: rgb(204,238,255)">
    <TD>Net unrealized depreciation of portfolio securities - related party:</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"><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><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period</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: 10pt Times New Roman, Times, Serif">(1,725</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&mdash;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left"><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="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right; border-bottom: Black 1pt solid">&mdash;&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1pt solid">&mdash;&nbsp;<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt"><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 STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Net change in unrealized depreciation
    of portfolio securities - related party</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1,725</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; padding-bottom: 1pt"><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 STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></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 (decrease) increase in net assets resulting from
    operations</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(1,367</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">342</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</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></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="font-size: 10pt; font-weight: normal; text-align: left; font-style: normal">Net (decrease) increase in net assets resulting
    from operations per share:</TD><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-size: 10pt; font-weight: normal; text-align: left; padding-bottom: 2.5pt; font-style: normal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.11</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.03</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(0.50</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; font-weight: normal; text-align: left; font-style: normal">Weighted average shares outstanding:</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-size: 11pt">&nbsp;</TD>
    <TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt">&nbsp;</TD>
    <TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; font-weight: normal; text-align: left; padding-bottom: 2.5pt; font-style: normal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">11,904</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">10,562</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">10,562</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-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; text-indent: 0.5in"></P>


<!-- Field: Page; Sequence: 35 -->
    <DIV STYLE="margin-top: 12pt; margin-bottom: 6pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: normal 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 -->35<!-- Field: /Sequence --></TD><TD STYLE="text-align: right; width: 33%">&nbsp;</TD></TR></TABLE></DIV>
    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: italic bold 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"></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">2014</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></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: 58%; text-align: left">Net (decrease) increase  in net assets resulting from operations</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(1,367</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">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></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 - related party</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,351</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: 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">4,351</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Increase (decrease) in net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,984</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,273</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">33,217</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">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></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">36,201</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">33,217</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</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>
</TABLE>



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

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center">&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; text-indent: 0.5in"><B>&nbsp;</B></P>

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: italic bold 10pt Times New Roman, Times, Serif"><TR><TD STYLE="text-align: center; width: 100%">&nbsp;</TD></TR></TABLE></DIV>
    <!-- Field: /Page -->

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B>&nbsp;</B></FONT></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-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">2014</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Reconciliation of (decrease) increase  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">Net increase (decrease)   in net assets resulting from operations</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(1,367</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Adjustments to reconcile net increase (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>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">63</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">&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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain - related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(724</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: 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">(2,116</TD><TD STYLE="text-align: left">)</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized depreciation of portfolio securities - related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,725</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">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: rgb(204,238,255)">
    <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">(793</TD><TD STYLE="text-align: left">)</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">63</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">8,952</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;Principal payments received from portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">270</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">&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">(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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in accounts receivable from investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(242</TD><TD STYLE="text-align: left">)</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accrued interest receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(868</TD><TD STYLE="text-align: left">)</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accounts receivable and other</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(84</TD><TD STYLE="text-align: left">)</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) increase in accounts payable and accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">558</TD><TD STYLE="text-align: left">&nbsp;</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></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;Increase (decrease) 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">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">(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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net cash (used in) provided by operating activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,367</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(19,662</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Cash flows from financing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings under margin account</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,999</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments under margin account</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(15,000</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">&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">(14,000</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 (used in) provided by 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">(1</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">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></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">(3,368</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,627</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></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">19,065</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">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></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">15,697</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">19,065</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</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></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 - related party</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">4,351</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest or dividends exchanged for portfolio securities</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">171</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">301</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued dividends exchange for portfolio
    securities - related party</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">107</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">&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">&nbsp;</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></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 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">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: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">17</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">11</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</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></TR>
</TABLE>



<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B></B></FONT></P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B></B></FONT></P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B></B></FONT><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">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; text-indent: 0.5in"><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; text-indent: 0.5in"><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>SELECTED PER SHARE DATA AND RATIOS
</B></P>

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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="19" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Year
    ended December 31,</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>2014</B></FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>2013</B></FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>2012</B></FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>2011</B></FONT></TD><TD STYLE="text-align: center; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>2010</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Investment income</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.08</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.00</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.05</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.05</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 9%; text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.33</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Expenses</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.28</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.30</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.30</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.40</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.42</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Net investment loss</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.20</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.30</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.25</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.35</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.09</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Net realized gain (loss)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.06</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.93</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.27</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(1.09</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Net change in unrealized
    depreciation</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.03</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1.26</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.02</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.99</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(1.36</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Net increase (decrease) in net assets</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.11</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.03</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.50</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.45</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(1.45</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Capital transactions:</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Shares issued for portfolio securities</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.37</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.16</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Dilutive effect of shares issued</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.54</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.07</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Increase (decrease)
    in net assets resulting from capital transactions</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.17</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.23</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Net increase (decrease) in net assets</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.28</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">0.03</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.50</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(0.68</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(1.45</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Net assets at beginning
    of period</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">3.14</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">3.11</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">3.61</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">4.29</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">5.74</FONT></TD><TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&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: 9pt Times New Roman, Times, Serif">Net assets at end
    of period</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">2.86</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">3.14</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">3.11</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">3.61</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left; border-bottom: Black 2.5pt double"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right; border-bottom: Black 2.5pt double"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">4.29</FONT></TD><TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Weighted average number of shares outstanding during period,</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">in thousands</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">11,904</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">10,562</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">10,562</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">10,049</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">8,862</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Market price per share:</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Beginning of period</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1.99</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">2.36</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">2.24</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">2.50</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">3.20</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">End of period</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">2.10</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1.99</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">2.36</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">2.24</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">2.50</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Selected information and ratios:</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Dividends declared</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Ratio of expenses to average net assets</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">9.75</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">9.49</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">8.93</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">10.60</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">8.26</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Ratio of net investment gain (loss) to
    average net assets</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(6.97</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(9.47</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(7.47</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)%</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(9.19</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(1.73</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Ratio of net increase (decrease) in net
    assets resulting from operations to average net assets</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(3.94</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">1.04</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(14.85</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)%</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(11.89</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(28.89</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">Total return on market price (1)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">5.53</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(15.68</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(5.36</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">)%</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(10.40</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">%)</FONT></TD><TD><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font: 9pt Times New Roman, Times, Serif">(21.8</FONT><FONT STYLE="font-size: 9pt">8</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 9pt">%)</FONT></TD></TR>
</TABLE>



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

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B></B></FONT><FONT STYLE="font: 7pt Times New Roman, Times, Serif">&nbsp;</FONT></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; text-indent: 0.5in">&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; text-indent: 0.5in"><B>&nbsp;</B></P>

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

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

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

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

<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>

<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>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><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>SCHEDULE OF INVESTMENTS </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER 31, 2014</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"><B><I>&nbsp;</I></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: normal 7.5pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <TD STYLE="font-weight: bold; width: 28%; text-align: left; vertical-align: bottom"><FONT STYLE="font-size: 8pt">Name&nbsp;and&nbsp;Location&nbsp;of</FONT></td>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: center; width: 9%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-align: center; width: 11%; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;Date&nbsp;of&nbsp;Initial&nbsp;</FONT></td>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left; width: 20%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="width: 1%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right; width: 9%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="width: 1%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center; width: 10%; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;Cost
    of&nbsp;</FONT></td>
    <TD STYLE="width: 1%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center; width: 10%; vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;Fair&nbsp;</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">Portfolio&nbsp;Company</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">Industry</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">Investment</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">Investment</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">Principal</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">Investment</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">Value<FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-variant: normal"><B><SUP>(1)</SUP></B></FONT></FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">Control Investments:&nbsp;Majority-owned
    <FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-variant: normal"><B><SUP>(4)</SUP></B><FONT STYLE="font-weight: normal">:</FONT></FONT></FONT></td>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 9pt; font-weight: bold; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 9pt; font-weight: bold; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid; vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Equus
                                         Energy, LLC</FONT></P>
                                 <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Houston, TX</FONT></P></td>
    <TD STYLE="text-align: center; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;Energy&nbsp;</FONT></td>
    <TD STYLE="text-align: center; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">December
    2011</FONT></td>
    <TD STYLE="text-align: left; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Member
    interest (100%)&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,050</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right; border-top: Black 1pt solid; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,800</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid; vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Equus
                                         Media Development Company, LLC</FONT></P>
                                 <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Houston, TX</FONT></P></td>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;Media&nbsp;</FONT></td>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;January
    2007&nbsp;</FONT></td>
    <TD STYLE="text-align: left; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Member interest
    (100%)&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,000</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;215</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Spectrum
                                         Management, LLC</FONT></P>
        <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Carrolton, TX</FONT></P></td>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;Business products and services&nbsp;</FONT></td>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;December&nbsp;1999&nbsp;</FONT></td>
    <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">285,000 units of Class&nbsp;A member interest
    (92.1%/82.5% fully diluted)&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,850</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&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="font-size: 4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">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>(3)</SUP></FONT></FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,158</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,158</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,158</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 4pt; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 4pt; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,008</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,158</FONT></td></tr>
<tr>
    <TD COLSPAN="4" STYLE="font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">Total
    Control Investments: Majority-owned (represents 38.0% of total investments at fair value)</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;16,058</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13,173</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">Affiliate
    Investments <FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal; font-variant: normal"><B><SUP>(5)</SUP>:</B></FONT></FONT></td>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-align: left; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: left; vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">PalletOne,
                                         Inc.</FONT></P>
        <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Bartow, FL</FONT></P></td>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;Shipping products and services&nbsp;</FONT></td>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;October 2001&nbsp;</FONT></td>
    <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">350,000&nbsp;shares&nbsp;of&nbsp;common stock
    (18.8%)&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;960</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font-size: 2.5pt; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 1pt; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 1pt; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 1pt; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 1pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">Total
    Affiliate Investments (represents 2.8% of total investments at fair value)</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;960</FONT></td></tr>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">Non-Affiliate
    Investments - Related Party (less than 5% owned):</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 4pt; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid; vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">MVC
                                         Capital, Inc.</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Purchase,
                                         NY</FONT></P></td>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Financial
    services</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">September
    2014</FONT></td>
    <TD STYLE="text-align: left; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">404,968 shares
    of common stock (1.7%) <FONT STYLE="font-family: Times New Roman, Times, Serif; font-weight: normal; font-style: normal; font-variant: normal"><SUP>(6)</SUP></FONT></FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,706</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,981</FONT></td></tr>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="vertical-align: top"><FONT STYLE="font-size: 8pt"><B>Total Non-Affiliate Investments - Related Party
    (represents 11.5% of total investments at fair value)</B></FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt"><B>$</B></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt"><B>5,706</B></FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt"><B>$</B></FONT></TD>
    <TD STYLE="vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt"><B>3,981</B></FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="border-top: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>Non-Affiliate Investments (less than 5%
    owned):</B></FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt"><B>&nbsp;</B></FONT></TD></TR>
<tr style="vertical-align: top">
    <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Orco
                                         Property Group S. A.</FONT></P>
                                              <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Paris, France</FONT></P></td>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">Real estate</FONT></td>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">April 2011</FONT></td>
    <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">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)(7)</SUP></FONT></FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;597</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;597</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,032</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Security
                                         Monitor Holdings, LLC</FONT></P>
                                              <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Boston,
                                         MA</FONT></P></td>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;Business
    products and services&nbsp;</FONT></td>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">November 2013</FONT></td>
    <TD STYLE="border-top: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">14% promissory
    note due 6/14 <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; vertical-align: top; border-top: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;500</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;500</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;500</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Total
    Non-Affiliate Investments (represents 4.4% of total investments at fair value)</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;1,097</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,532</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">Total
    Investment in Portfolio Securities</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;23,211</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19,646</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">Temporary
    Cash Investments</FONT></td>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; text-align: left; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">U.S. Treasury Bill</FONT></td>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">Government</FONT></td>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">December 2014</FONT></td>
    <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">UST 0% 6/15</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;14,999</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">14,999</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">14,996</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Total
    Temporary Cash Investments (represents 43.3% of total investments at fair value)</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">14,999</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">14,996</FONT></td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">Total
    Investments</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;38,210</FONT></td>
    <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34,642</FONT></td></tr>
</table>


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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><sup>(1)</sup></font></td>
    <td style="font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif">See Note 3 to the financial statements, Valuation of Investments.</font></td></tr>
<tr style="vertical-align: top">
    <td style="width: 3%; font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><sup>(2)</sup></font></td>
    <td style="width: 97%; font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif">Income-producing.</font></td></tr>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 7.5pt; line-height: 115%"><SUP>(3)</SUP></TD>
    <TD STYLE="font-size: 7.5pt; line-height: 115%">Non-income producing.</TD></TR>
<tr style="vertical-align: top">
    <td style="font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><sup>(4)</sup></font></td>
    <td style="font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% 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-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><sup>(5)</sup></font></td>
    <td style="font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% 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-size: 7.5pt; line-height: 115%"><SUP>(6)</SUP></TD>
    <TD STYLE="font-size: 7.5pt; line-height: 115%">Pursuant to a Share Exchange Agreement between the Fund and MVC dated May 12, 2014, MVC has the right to rescind
the Agreement and cancel the Share Exchange if Equus does not complete a &ldquo;reorganization&rdquo; (as defined under Section
2(a)(33) of the 1940 Act) within 12 months of the date of the Agreement.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 7.5pt; line-height: 115%"><SUP>(7)</SUP></TD>
    <TD STYLE="font-size: 7.5pt; line-height: 115%">In October 2014, the terms of these notes were amended to provide, among other changes, an extension of the
maturity date to October 2019, and a reduction in the interest rate applicable to the notes from a combination of 5% cash and 5%
payment-in-kind securities, to 7% in cash. <I></I></TD></TR>
</table>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center">The accompanying notes are an integral
part of these financial statements.</P>

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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE OF INVESTMENTS &ndash; (Continued)</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER 31, 2014</B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in"><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 67.1% of the total value of the investments in portfolio securities as of 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">Our investments in portfolio securities
consist of the following types of securities as of December 31, 2014 (in thousands):</P>

<P STYLE="font: 10pt/normal Times New 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; 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; 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">10,015</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">27.7</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">4,255</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,690</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.0</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">6,056</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">&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">4,941</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">&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">13.6</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: left; padding-bottom: 1pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">23,211</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">19,646</TD><TD STYLE="border-bottom: Black 2.5pt double; 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">54.3</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">%</TD></TR>
</TABLE>



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

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0; text-indent: 24.5pt; color: Red"><B></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">Interest payments are being received
and/or accrued on notes with a fair value of $1.5 million, while accrued interest has been impaired on notes receivable included
in secured and subordinated debt with a fair value of $3.2 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">The following is a summary by industry of our investments
in portfolio securities as of December 31, 2014 (in thousands):</P>

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

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0 0 0 1in; 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">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"><FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><b><U STYLE="text-decoration: none">Net Assets</u></b></font></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">9,800</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">27.1</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Financial services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,981</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11.0</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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">3,658</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10.1</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Real estate</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,032</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.9</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Shipping products and services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">960</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.7</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">215</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">&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">0.5</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">19,646</TD><TD STYLE="border-bottom: Black 2.5pt double; 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">54.3</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">%</TD></TR>
</TABLE>



<P STYLE="font: 9pt/normal Sans-Serif; margin: 0 0 0 1in; color: Red"><B>&nbsp;</B></P>

<P STYLE="font: 9pt/normal Sans-Serif; margin: 0 0 0 1in; color: Red"><B></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">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>

<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/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>&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 </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">(in thousands, except share data)</P>

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

<P STYLE="font: 6pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: normal 7.5pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: left; vertical-align: bottom; width: 28%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Name&nbsp;and&nbsp;Location&nbsp;of&nbsp;</B></FONT></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top; width: 9%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: bottom; width: 10%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;Date&nbsp;of&nbsp;Initial&nbsp;</B></FONT></td>
    <TD STYLE="text-align: left; font-size: 11pt; line-height: 115%; vertical-align: top; width: 20%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top; width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top; width: 10%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top; width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: bottom; width: 10%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;Cost
    of&nbsp;</B></FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top; width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: bottom; width: 10%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;Fair&nbsp;</B></FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="text-decoration: none; font-size: 11pt; line-height: 0; text-align: left; vertical-align: bottom"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Portfolio&nbsp;Company&nbsp;</B></FONT></td>
    <TD STYLE="text-decoration: none; font-size: 11pt; line-height: 0; text-align: center; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;Industry&nbsp;</B></FONT></td>
    <TD STYLE="text-decoration: none; font-size: 11pt; line-height: 0; text-align: center; vertical-align: bottom"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;Investment&nbsp;</B></FONT></td>
    <TD STYLE="text-decoration: none; font-size: 11pt; line-height: 0; text-align: center; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;Investment&nbsp;</B></FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 0; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-decoration: none; font-size: 11pt; line-height: 0; text-align: center; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;Principal&nbsp;</B></FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 0; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-decoration: none; font-size: 11pt; line-height: 0; text-align: center; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;Investment&nbsp;</B></FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 0; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-decoration: none; font-size: 11pt; line-height: 115%; text-align: center; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Value
    <SUP>(1)</SUP></B></FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 11pt; line-height: 115%; border-top: Black 1pt solid"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Control
    Investments:&nbsp;&nbsp;Majority-owned <SUP>(4)</SUP>:&nbsp;</B></FONT></td>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left; font-size: 11pt; line-height: 115%; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; border-top: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Equus
    Energy, LLC&nbsp;</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: center; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Energy&nbsp;</FONT></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">December
    2011</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Member
    interest (100%)&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;7,050
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;8,000</FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD STYLE="text-align: left; border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Houston,
    TX</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: left; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Equus
    Media Development Company, LLC</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: center; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Media&nbsp;</FONT></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;January
    2007&nbsp;</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Member
    interest (100%)&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;3,000
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;216</FONT></td></tr>
<tr>
    <TD STYLE="text-align: left; border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Houston,
    TX</FONT></td>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: left; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD STYLE="text-align: left; vertical-align: top"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 8pt">Spectrum Management,
        LLC</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 8pt">Carrolton, TX</FONT></P></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: center; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Business
    products and services&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; text-align: center; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;December&nbsp;1999&nbsp;</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">285,000
    units of Class&nbsp;A member interest (92.1%/82.5% fully diluted)&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;2,850
    &nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD STYLE="text-align: left; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">16%
    subordinated promissory note due 11/11 <SUP>(3)</SUP></FONT></td>
    <TD STYLE="vertical-align: top; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="vertical-align: top; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,889
    &nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,889
    &nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,889</FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD STYLE="text-align: left; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: left; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,739
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,889</FONT></td></tr>
<tr>
    <TD COLSPAN="5" STYLE="text-align: left; border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Total
    Control Investments: Majority-owned (represents 39.0% of total investments at fair value)&nbsp;</B></FONT></td>
    <TD STYLE="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$&nbsp;</FONT></td>
    <TD STYLE="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;&nbsp;15,789
    &nbsp;</B></FONT></td>
    <TD STYLE="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;&nbsp;&nbsp;11,105</B></FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Affiliate
    Investments <SUP>(5)</SUP>:&nbsp;</B></FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: left; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; text-align: left; vertical-align: top"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 8pt">PalletOne, Inc.</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 8pt">Bartow, FL</FONT></P></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: center; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Shipping
    products and services&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;October
    2001&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">350,000&nbsp;shares&nbsp;of&nbsp;common
    stock (18.70%)&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;350
    &nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250</FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Total
    Affiliate Investments (represents 0.9% of total investments at fair value)&nbsp;</B></FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350
    &nbsp;</B></FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;250</B></FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Non-Affiliate
    Investments (less than 5% owned):</B></FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD STYLE="text-align: left; vertical-align: bottom"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 8pt">Orco Property Group
        S. A.</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"></P></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: bottom"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Real
    estate</FONT></td>
    <TD STYLE="vertical-align: bottom; text-align: center; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">April
    2011</FONT></td>
    <TD STYLE="text-align: left; font-size: 11pt; line-height: 115%; vertical-align: bottom"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">73,666
    shares common stock</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">125
    &nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$&nbsp;</FONT></td>
    <TD STYLE="vertical-align: bottom; text-align: right; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">169</FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD STYLE="font-size: 7pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">Paris, France</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">10%
    promissory note due 2/18 <SUP>(2)</SUP></FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;696
    &nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;696
    &nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,480</FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">821&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,649</FONT></td></tr>
<tr style="vertical-align: top">
    <TD STYLE="text-align: left; vertical-align: top"><P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 8pt">Security Monitor Holding,
        LLC</FONT></P>
        <P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 8pt">Boston, MA</FONT></P></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: center; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Business
    products and services&nbsp;</FONT></td>
    <TD STYLE="text-align: center; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">November
    2013</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">14%
    promissory note due 5/14 <SUP>(2)</SUP></FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;500
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;500&nbsp;
    </FONT></td>
    <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;500</FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD COLSPAN="4" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Total
    Non-Affiliate Investments (represents 7.5% of total investments at fair value)</B></FONT></td>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$&nbsp;</FONT></td>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,321
    &nbsp;</B></FONT></td>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,149</B></FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Total
    Investment in Portfolio Securities</B></FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;&nbsp;17,460
    &nbsp;</B></FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;&nbsp;13,504</B></FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD STYLE="font-size: 11pt; line-height: 115%; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Temporary
    Cash Investments</B></FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; border-bottom: Black 1pt solid; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; border-bottom: Black 1pt solid; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">U.S.
    Treasury Bill</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: center; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">Government</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: center; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">December
    2013</FONT></td>
    <TD STYLE="font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">UST
    0% 2/14</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">&nbsp;&nbsp;15,000
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$&nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">15,000
    &nbsp;</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">15,000</FONT></td></tr>
<tr style="vertical-align: bottom">
    <TD COLSPAN="4" STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Total
    Temporary Cash Investments (represents 52.6% of total investments at fair value)</B></FONT></td>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$&nbsp;</FONT></td>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>15,000
    &nbsp;</B></FONT></td>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>15,000</B></FONT></td></tr>
<tr style="background-color: #CCEEFF">
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>Total
    Investments</B></FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: left; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 11pt; line-height: 115%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$&nbsp;</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;&nbsp;32,460
    &nbsp;</B></FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif">$</FONT></td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 11pt; line-height: 115%; vertical-align: top"><FONT STYLE="font: 8pt Times New Roman, Times, Serif"><B>&nbsp;&nbsp;28,504</B></FONT></td></tr>
</table>
<P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><sup>(1)</sup></font></td>
    <td style="font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif">See Note 3 to the financial statements, Valuation of Investments.</font></td></tr>
<tr style="vertical-align: top">
    <td style="width: 3%; font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><sup>(2)</sup></font></td>
    <td style="width: 97%; font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif">Income-producing.</font></td></tr>
<TR STYLE="vertical-align: top">
    <TD STYLE="font-size: 7.5pt; line-height: 115%"><SUP>(3)</SUP></TD>
    <TD STYLE="font-size: 7.5pt; line-height: 115%">Non-income producing.</TD></TR>
<tr style="vertical-align: top">
    <td style="font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><sup>(4)</sup></font></td>
    <td style="font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% 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-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><sup>(5)</sup></font></td>
    <td style="font-size: 7.5pt; line-height: 115%"><font style="font: 7.5pt/115% 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; text-indent: 0.5in"><B>&nbsp;</B></P>

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

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

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

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

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


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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, 2013</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>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Type of Securities</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Cost</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Fair Value</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Fair Value as</b></P>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Percentage of</b></P>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Net Assets</b></P></td></tr>
<tr style="vertical-align: bottom">
    <td style="text-align: center; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: center; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: center; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: center; line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="width: 46%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Limited liability company investments</font></td>
    <td style="width: 5%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">12,900</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 5%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">8,216</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 5%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">24.7</font></td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Secured and subordinated debt</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">4,085</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">4,869</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14.7</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Common stock</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">475</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">419</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1.3</font></td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">17,460</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">13,504</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">40.7</font></td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
</table>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><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: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Industry</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Fair Value</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Fair Value as</b></P>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><b>Percentage of</b></P>
        <P STYLE="font: 10pt/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: 59%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Energy</font></td>
    <td style="width: 8%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 11%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">8,000</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 5%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 13%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">24.1</font></td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Business products and services</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,389</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">10.2</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Real estate</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">1,649</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">5.0</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Shipping products and services</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">250</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.8</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Media</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">216</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.6</font></td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">13,504</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">40.7</font></td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">%</font></td></tr>
</table>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center; text-indent: 0.5in">&nbsp;</P>

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

<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; text-indent: 0.5in">&nbsp;</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>NOTES TO FINANCIAL STATEMENTS </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>DECEMBER 31, 2014, 2013 AND 2012</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><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 1940 Act. We currently qualify as a regulated investment company RIC for federal income tax purposes and, therefore, are not
required to pay corporate income taxes on any income or gains that we distribute to our stockholders. We have certain wholly owned
taxable subsidiaries (&ldquo;Taxable Subsidiaries&rdquo;) each of which holds one or more portfolio investments listed on our Schedules
of Investments. The purpose of these Taxable Subsidiaries is to permit us to hold certain income-producing investments or portfolio
companies organized as limited liability companies, or LLCs, (or other forms of pass-through entities) and still satisfy the RIC
tax requirement that at least 90% of our gross revenue for income tax purposes must consist of investment income. Absent the Taxable
Subsidiaries, a portion of the gross income of these income-producing investments or of any LLC (or other pass-through entity)
portfolio investment, as the case may be, would flow through directly to us for the 90% test. To the extent that such income did
not consist of investment income, it could jeopardize our ability to qualify as a RIC and, therefore, cause us to incur significant
federal income taxes. The income of the LLCs (or other pass-through entities) owned by Taxable Subsidiaries is taxed to the Taxable
Subsidiaries and does not flow through to us, thereby helping us preserve our RIC status and resultant tax advantages. We do not
consolidate the Taxable Subsidiaries for income tax purposes and they may generate income tax expense because of the Taxable Subsidiaries&rsquo;
ownership of the portfolio companies. We reflect any such income tax expense on our Statements of Operations.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><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">As of December 31, 2014, we had cash
and cash equivalents of $15.7 million. We had $19.7 million of our net assets of $36.2 million invested in portfolio securities.
We also had $15.1 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 to maintain our pass-through tax
treatment. Of this amount, $15.0 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 2, 2015 and we subsequently repaid this margin loan. The margin
interest was paid on February 4, 2015.</P>

<P STYLE="font: 10pt/normal Times New 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>

<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">During 2014 and 2013, 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, 2014, 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 $15.1 million.
The U.S. Treasury bills were sold on January 2, 2015 and the total amount borrowed was repaid at that time. The margin interest
was paid on February 4, 2015. 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 $15.1 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;<B>&nbsp;</B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>Valuation of
Investments&mdash;</B>We follow ASC Topic 820 for measuring fair value. Prior to our election to become a
BDC,  we also followed the guidance in ASC Topic 820 in disclosing the fair value reported for all financial
instruments that were either impaired or available for sale securities, using the definitions provided in Accounting
Standards Codification Topic 320, &ldquo;Investments &ndash; Debt and Equity Securities&rdquo; (&ldquo;ASC Topic 320&rdquo;).
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date and sets out a fair value hierarchy. The fair value hierarchy gives the
highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to
unobservable inputs (Level 3). Inputs are broadly defined under ASC Topic 820 as assumptions market participants would use in
pricing an asset or liability. The three levels of the fair value hierarchy under ASC Topic 820 are described below:</P>

<P STYLE="font: 10.5pt Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Level
1&mdash;Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to
access at the measurement date.</FONT></P>

<P STYLE="font: 10.5pt Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Level
2&mdash;Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly;
and fair value is determined through the use of models or other valuation methodologies.</FONT></P>

<P STYLE="font: 10.5pt Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Level
3&mdash;Inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for
the asset or liability. The inputs into the determination of fair value are based upon the best information under the circumstances
and may require significant management judgment or estimation.</FONT></P>

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

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

<P STYLE="font: 10.5pt Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">In
certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such
cases, an investment&rsquo;s level within the fair value hierarchy is based on the lowest level of input that is significant
to the fair value measurement.  Our  assessment of the significance of a particular input to the fair value
measurement in its entirety requires judgment, and considers factors specific to the investment.</FONT></P>

<P STYLE="font: 10.5pt Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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<P STYLE="font: 10.5pt Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"></FONT></P>

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

<P STYLE="font: 10.5pt Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Investments
for which prices are not observable are generally private investments in the debt and equity securities of operating
companies. The primary valuation method used to estimate the fair value of these Level 3 investments is the discounted cash flow
method (although a liquidation analysis, option theoretical, or other methodology may be used when more appropriate). The discounted
cash flow approach to determine fair value (or a range of fair values) involves applying an appropriate discount rate(s) to the
estimated future cash flows using various relevant factors depending on investment type, including comparing the latest arm&rsquo;s
length or market transactions involving the subject security to the selected benchmark credit spread, assumed growth rate (in
cash flows), and capitalization rates/multiples (for determining terminal values of underlying portfolio companies). The valuation
based on the inputs determined to be the most reasonable and probable is used as the fair value of the investment. The determination
of fair value using these methodologies may take into consideration a range of factors including, but not limited to, the price
at which the investment was acquired, the nature of the investment, local market conditions, trading values on public exchanges
for comparable securities, current and projected operating performance, financing transactions subsequent to the acquisition of
the investment and anticipated financing transactions after the valuation date. Application of these valuation methodologies involves
a significant degree of judgment by management. Fair values of new investments are generally assumed to be equal to their cost
to the Company for up to three months after their initial purchase.</FONT></P>

<P STYLE="font: 10.5pt Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">To
assess the reasonableness of the discounted cash flow approach, the fair value of equity securities, including warrants, in
portfolio companies may also consider the market approach&mdash;that is, through analyzing and applying to the underlying
portfolio companies, market valuation multiples of publicly-traded firms engaged in businesses similar to those of the
portfolio companies. The market approach to determining the fair value of a portfolio company&rsquo;s equity security (or
securities) will typically involve: (1) applying to the portfolio company&rsquo;s trailing twelve months (or current year
projected) EBITDA a low to high range of enterprise value to EBITDA multiples that are derived from an analysis of
publicly-traded comparable companies, in order to arrive at a range of enterprise values for the portfolio company; (2)
subtracting from the range of calculated enterprise values the outstanding balances of any debt or equity securities that
would be senior in right of payment to the equity securities we hold; and (3) multiplying the range of equity values derived
therefrom by  our ownership share of such equity tranche in order to arrive at a range of fair values for our equity security (or securities). Application of these valuation methodologies involves a significant degree
of judgment by Management.</FONT></P>

<P STYLE="font: 10.5pt Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Equity
in a portfolio company that invests in loans will typically be valued by arriving at a fair value of such vehicle&rsquo;s loan
assets (plus, when appropriate, the carrying value of certain other assets), and deducting the book value or fair value (as appropriate)
of such vehicle&rsquo;s liabilities to arrive at a fair value for the equity. When appropriate, in order to recognize value that
would be created by growth opportunities of such portfolio company, equity in a portfolio company may also be valued by taking
into consideration the magnitude, timing, and effective life of its expected future investments in loans.</FONT></P>

<P STYLE="font: 10.5pt Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Due
to the inherent uncertainty of determining the fair value of Level 3 investments that do not have a readily available market value,
the fair value of the investments may differ significantly from the values that would have been used had a ready market existed
for such investments and may differ materially from the values that may ultimately be received or settled. Further, such investments
are generally subject to legal and other restrictions or otherwise are less liquid than publicly traded instruments. If we
were required to liquidate a portfolio investment in a forced or liquidation sale, we might realize significantly less
than the value at which such investment had previously been recorded. With respect to Level 3 investments, where sufficient market
quotations are not readily available or for which no or an insufficient number of indicative prices from pricing services or brokers
or dealers have been received,  we undertake, on a quarterly basis, a valuation process as described below:</FONT></P>

<P STYLE="font: 10.5pt Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 55pt; text-align: right">&bull;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">For each debt investment, a
basic credit rating review process is completed. The risk rating on every credit facility is reviewed and either reaffirmed or
revised  by our Investment Committee.</FONT></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 55pt; text-align: right">&bull;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Each portfolio company or investment
is valued by an investment professional.</FONT></TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify"><TD STYLE="width: 55pt; text-align: right">&bull;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Third party valuation firm(s)
are engaged to provide valuation services as requested, by reviewing Management&rsquo;s preliminary valuations.
Our Management&rsquo;s preliminary fair value conclusions on each of the Fund&rsquo;s
assets for which sufficient market quotations are not readily available is reviewed and assessed by a third-party valuation firm
at least once in every 12-month period, and more often as determined by the Audit Committee or required
by our valuation policy. Such valuation assessment may be in the form of positive assurance, range of values or
other valuation method based on the discretion of our Board.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 6pt">
<TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="text-align: right; width: 55pt">&bull;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Audit Committee  reviews the
                                                                                  preliminary valuations of our Management and independent valuation firms and, if appropriate, recommends
                                                                                  the approval of the valuations by the Board.</FONT></TD>
</TR>
</TABLE>




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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 55pt; text-align: right">&bull;</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Our Board discusses
valuations and determines the fair value of each investment in the portfolio in good faith based on the input of Management, the Audit Committee and, where appropriate, the respective independent valuation firms.</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">The following sections describe the
valuation techniques we use to measure different financial instruments at fair value and include the levels within the fair value
hierarchy in which the financial instruments are categorized.</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>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">For most of our investments, market
quotations are not available. With respect to investments for which market quotations are not readily available or when such market
quotations are deemed not to represent fair value, our Board has approved a multi-step valuation process each quarter,
as described below:</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right">1.</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">Each portfolio company or investment is reviewed by our investment professionals with
independent valuation firms engaged by the Fund;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right">2.</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">The independent valuation firms conduct independent valuations and make their own
independent assessments;</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right">3.</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">The Audit Committee of our Board reviews and discusses the preliminary
valuation of the Fund and that of the independent valuation firms; and</TD>
</TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 6pt"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 35pt; text-align: right">4.</TD><TD STYLE="width: 5pt"></TD><TD STYLE="text-align: justify">The Board discusses valuations and determines the fair value of each
investment in our portfolio in good faith based on the input of our Management, the respective independent valuation firm
and the Audit Committee.</TD></TR></TABLE>



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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Investments are valued utilizing a yield analysis, enterprise
value (&ldquo;EV&rdquo;) analysis, net asset value analysis, liquidation analysis, discounted cash flow analysis, or a combination
of methods, as appropriate. The yield analysis uses loan spreads and other relevant information implied by market data involving
identical or comparable assets or liabilities. Under the EV analysis, the EV of a portfolio company is first determined and allocated
over the portfolio company&rsquo;s securities in order of their preference relative to one another (i.e., &ldquo;waterfall&rdquo;
allocation). To determine the EV, we typically use a market multiples approach that considers relevant and applicable market trading
data of guideline public companies, transaction metrics from precedent M&amp;A transactions and/or a discounted cash flow analysis.
The net asset value analysis is used to derive a value of an underlying investment (such as real estate property) by dividing
a relevant earnings stream by an appropriate capitalization rate. For this purpose, we consider capitalization rates for similar
properties as may be obtained from guideline public companies and/or relevant transactions. The liquidation analysis is intended
to approximate the net recovery value of an investment based on, among other things, assumptions regarding liquidation proceeds
based on a hypothetical liquidation of a portfolio company&rsquo;s assets. The discounted cash flow analysis uses valuation techniques
to convert future cash flows or earnings to a range of fair values from which a single estimate may be derived utilizing an appropriate
discount rate. The measurement is based on the net present value indicated by current market expectations about those future amounts.</P>

<P STYLE="font: 10.5pt Trebuchet MS, Times, Serif; margin: 0 0 0 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">In applying these methodologies, additional factors that
we consider in fair value pricing our investments may include, as we deem relevant: security covenants, call protection provisions,
and information rights; the nature and realizable value of any collateral; the portfolio company&rsquo;s ability to make payments;
the principal markets in which the portfolio company does business; publicly available financial ratios of peer companies; the
principal market; and enterprise values, among other factors.</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">Because of the inherent uncertainty
of the valuation of portfolio securities which do not have readily ascertainable market values, amounting to $15.7 million and
$13.3 million as of December 31, 2014 and 2013, respectively, our fair value determinations may materially differ from the values
that would have been used had a ready market existed for the 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 adjust our net asset value for the
changes in the value of our publicly held securities, if applicable, and material changes in the value of private securities, generally
determined on a quarterly basis or as announced in a press release, and report those amounts to Lipper Analytical Services, Inc.
Our net asset value appears in various publications, including <I>Barron&rsquo;s </I>and <I>The Wall Street Journal</I>.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">For loan and debt securities, the Fund
has performed a yield analysis assuming a hypothetical current sale of the security. The yield analysis considers changes in interest
rates and changes in leverage levels of the portfolio company as compared to the market interest rates and leverage levels. Assuming
the credit quality of the portfolio company remains stable, the Fund will use the value determined by the yield analysis as the
fair value for that security.</P>

<P STYLE="font: 10pt/normal Times New 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"></P>




<P STYLE="font: 10pt/0 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"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">We
assess the levels of the investments at each measurement date, and transfers between levels are recognized on the subsequent
measurement date closest in time to the actual date of the event or change in circumstances that caused the transfer. There
were no transfers among Level 1, 2 and 3 for the years ended December 31, 2014, 2013, and 2012.</FONT></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">As of December 31, 2014,
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:</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"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: normal 9pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; font-weight: bold; text-align: center"></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="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt; font-weight: bold">Fair
    Value Measurements as of December 31, 2014</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"><B>(in thousands)</B></FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt"><B>Total</B></FONT></TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 9pt"><B>Quoted
                                         Prices in Active Markets for Identical Assets</B></FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt"><B>(Level
                                         1)</B></FONT></P></TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><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: 10pt"><B>(Level
                                         2)</B></FONT></P></TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 9pt"><B>Significant
                                         Unobservable Inputs</B></FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt"><B>(Level
                                         3)</B></FONT></P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Assets</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Investments:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; text-align: left; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Control
    investments</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">13,173</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 11%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 11%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">13,173</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Affiliate investments</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">960</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">960</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Non-affiliate investments - related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,981</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3,981</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Non-affiliate
    investments</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">1,532</TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,532</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total investments</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">19,646</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal">3,981</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">15,665</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary
    cash investments</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">14,996</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">14,996</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&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-family: Times New Roman, Times, Serif">Total investments
    and temporary cash investments</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">34,642</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">18,977</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">15,665</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B></B></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; text-indent: 24.5pt"></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: 10pt/normal Times New 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: normal 9pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; font-weight: bold; text-align: center"></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="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt; font-weight: bold">Fair
    Value Measurements as of December 31, 2013</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"><B>(in thousands)</B></FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt"><B>Total</B></FONT></TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 9pt"><B>Quoted
                                         Prices in Active Markets for Identical Assets</B></FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt"><B>(Level
                                         1)</B></FONT></P></TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><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: 10pt"><B>(Level
                                         2)</B></FONT></P></TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt"><B>&nbsp;</B></FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 9pt"><B>Significant
                                         Unobservable Inputs</B></FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt"><B>(Level
                                         3)</B></FONT></P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">Assets</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;Investments:</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; text-align: left; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Control
    investments</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right">11,105</TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 11%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 11%; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 1%"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 10%; text-align: right">11,105</TD><TD STYLE="width: 1%; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Affiliate investments</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">250</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right">250</TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Non-affiliate
    investments</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">2,149</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">169</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,980</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total investments</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">13,504</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal">169</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">13,335</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Temporary
    cash investments</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">15,000</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">15,000</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 1pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total investments
    and temporary cash investments</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">28,504</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">15,169</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">13,335</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</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="margin-top: 0; margin-bottom: 0"></P>





<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">There were no transfers between Level 1 and Level 2
during 2014 and 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">The following table provides a reconciliation
of fair value changes during 2014 for all investments for which we determine fair value using significant unobservable (Level 3)
inputs:</P>

<P STYLE="font: 9pt/115% Sans-Serif; margin: 0; color: Red"><B></B>&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: 9pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; font-weight: bold; text-align: center"></TD><TD STYLE="padding-bottom: 1pt"><FONT STYLE="font-size: 9pt">&nbsp;</FONT></TD>
    <TD COLSPAN="15" STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 1pt 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-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">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="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 9pt">Total</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%">Fair value as of December&nbsp;31, 2013</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">11,105</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">250</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">1,980</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">13,335</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">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">(63</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(63</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: 10pt">Change in unrealized depreciation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,799</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">710</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(349</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,160</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">Purchases of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">269</TD><TD STYLE="text-align: left">&nbsp;</TD><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">171</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">440</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">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="border-bottom: Black 1pt solid; 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="border-bottom: Black 1pt solid; 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">(207</TD><TD STYLE="border-bottom: Black 1pt solid; 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">(207</TD><TD STYLE="border-bottom: Black 1pt solid; 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, 2014</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13,173</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">960</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,532</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">15,665</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 11pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 11pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="23" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%"><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-size: 11pt; line-height: 115%"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B><I>(in thousands)</I></B></FONT></TD>
    <TD STYLE="font-size: 11pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Control Investments</B></FONT></TD>
    <TD STYLE="font-size: 11pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Affiliate Investments</B></FONT></TD>
    <TD STYLE="font-size: 11pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%"><FONT STYLE="font: 9pt Times New Roman, Times, Serif"><B>Non-affiliate Investments</B></FONT></TD>
    <TD STYLE="font-size: 11pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 11pt; line-height: 115%"><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%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Fair value as of December&nbsp;31, 2012</FONT></TD>
    <TD STYLE="width: 3%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">7,419</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 3%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">150</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 3%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1,425</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 3%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="width: 10%; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">8,994</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Realized losses</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(9,795</FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(9,795</FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Change in unrealized depreciation</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3,376</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">100</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">9,859</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">13,335</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Purchases of portfolio securities</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">310</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">500</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">810</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: left; padding-left: 10pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Proceeds from sales/dispositions</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(9</FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(9</FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></TD>
    </TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Fair value as of December 31, 2013</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">11,105</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">250</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1,980</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">13,335</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    </TR>
</TABLE>
<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>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 the Fund owns more than 25% of the voting securities or maintains greater than 50% of
the board representation. Under the 1940 Act, &ldquo;Affiliate Investments&rdquo; are defined as those non-control
investments in companies in which we own between 5% and 25% of the voting securities. Under the 1940 Act,
&ldquo;Non-affiliate Investments&rdquo; are defined as investments that are neither Control Investments nor Affiliate
Investments.</P>

<P STYLE="font: 10pt/normal Times New 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">As of December 31, 2014 and
2013, we had no outstanding commitments to our portfolio company investments; however, under certain circumstances, we may
be called on to make follow-on investments in certain portfolio companies. If we do not have sufficient funds to make
follow-on investments, the portfolio company in need of the investment may be negatively impacted. Also, our equity interest
in the estimated fair value of the portfolio company could be reduced. Follow-on investments may include capital infusions
which are expenditures made directly to the portfolio company to ensure that operations are completed, thereby allowing the
portfolio company to generate cash flows to service the debt.</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 we recognize any additional interest income. We will write
off uncollectible interest upon the occurrence of a definitive event such as a sale, bankruptcy, or reorganization of the
relevant portfolio interest.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-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. 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: 0.5in">&nbsp;</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 and Temporary Cash Investments&rdquo; used for purposes of complying with RIC requirements from cash equivalents.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B>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 1 for
discussion of Taxable Subsidiaries and see Note 2 for further discussion of the Fund&rsquo;s RIC borrowings.</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-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 $0.02 million, $0.01 million and $0.01 million for the years ended December 31, 2014, December 31, 2013 and December
31, 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">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 each of the years ended December 31, 2014,  2013 and 2012.</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>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; text-indent: 0.5in">&nbsp;</P>

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<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; text-indent: 24.5pt">The following table summarizes the significant
non-observable inputs in the fair value measurements of our level 3 investments by category of investment and valuation technique
as of December 31, 2014:</P>

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

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0"><FONT STYLE="font: 9pt Sans-Serif; color: Red"><B></B></FONT></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: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&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; vertical-align: bottom">Range</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-style: italic; border-bottom: Black 1pt solid; text-align: left; vertical-align: bottom">(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; vertical-align: bottom">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; vertical-align: bottom">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; vertical-align: bottom">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; vertical-align: bottom">Minimum</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt; text-align: right; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">Maximum</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 31%; text-align: left; vertical-align: bottom">Secured and subordinated debt</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: right; vertical-align: bottom">$</TD><TD STYLE="width: 8%; text-align: right; vertical-align: bottom">4,690</TD><TD STYLE="width: 1%; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 18%; text-align: center; vertical-align: bottom">Pending transaction yield analysis</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 20%; text-align: center; vertical-align: bottom">Discount for lack of marketability</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="width: 6%; font-size: 8pt; text-align: right; vertical-align: bottom">0.0</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right; vertical-align: bottom">%</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="width: 6%; font-size: 8pt; text-align: right; vertical-align: bottom">25</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: right; vertical-align: bottom">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; vertical-align: bottom">Common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">960</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom"><P STYLE="margin-top: 0; margin-bottom: 0">Pending transaction yield analysis</P>
                                                           <P STYLE="margin-top: 0; margin-bottom: 0">Enterprise value analysis</P>
                                                           <P STYLE="margin-top: 0; margin-bottom: 0">Income/Market approach</P></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">EBITDA Multiple/Discount for lack of marketability/Control premium</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">0</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">%</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">100</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">Asset approach</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">Recovery rate</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">0</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">%</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">100</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; vertical-align: bottom">Limited liability company investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right; vertical-align: bottom">10,015</TD><TD STYLE="padding-bottom: 1pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; vertical-align: bottom"><P STYLE="margin-top: 0; margin-bottom: 0">Discounted cash flow</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Guideline transaction method</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt; vertical-align: bottom">Reserve adjustment factors</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">75</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: right; vertical-align: bottom">%</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt; text-align: right; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">100</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: right; vertical-align: bottom">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right; vertical-align: bottom">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: right; vertical-align: bottom">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right; vertical-align: bottom">15,665</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 2.5pt; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 2.5pt; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: right; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right; vertical-align: bottom">&nbsp;</TD></TR></TABLE>




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

<P STYLE="font: 9pt/115% Sans-Serif; margin: 0; color: Red">&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: 0.5in"></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">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 in services rendered by A+ Filings for the year ended December 31, 2012.
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">&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 of
the Fund, is a managing partner and co-founder of Global Energy. For each of the years ended December 31, 2014, 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: 0.5in"><FONT STYLE="background-color: white">In
respect of services provided to the Fund by members of the Board not in connection with their roles and duties as
directors, the Fund pays a rate of $250 per hour for services rendered.&nbsp;</FONT>During 2014, we paid Kenneth I. Denos,
P.C., a professional corporation owned by Kenneth I. Denos, a director of the Fund, $321,125 for services if provided to the
Fund during the year.</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><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">&nbsp;</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">As a RIC,
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 2012, 2013 and 2014 no distributions were required or made.</P>

<P STYLE="font: 10pt/normal Times New 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 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/normal Times New 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">There are no material book to tax differences for net investment
income/losses, realized gains or unrealized appreciation/depreciation. As of December 31, 2014, we had approximately $31.8 million
in capital losses of which $15.6 million will begin expiring after 2017, and the remaining $16.2 million can be carried forward
definitely.</P>

<P STYLE="font: 10pt/normal Times New 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">Return of Capital Statement of Position
has no material book to tax differences for the three years ended December 31, 2014 and therefore has no material book to tax differences
impacting accumulated earnings.</P>

<P STYLE="font: 10pt/normal Times New 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: 0.5in"></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">We believe that any aggregate exposure
for uncertain tax positions should not have a material impact on our financial statements as of December 31, 2014 or December
31, 2013. 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">&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 tax returns for 2010 through 2014 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; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>(6) COMMITMENTS AND CONTINGENCIES</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 had an operating lease for office
space that expired in September 2014. Our current office space lease as of December 31, 2014 is month-to-month.  The lease contained
a provision for certain annual rental escalations. Rent expense under the operating lease agreement, inclusive of common area maintenance
costs was $61,000, $85,000 and $84,000 for each of the years ended December 31, 2014, 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">As of December 31, 2014, 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">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B> 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 Settlement</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 Texas state court, which was subsequently consolidated into an Arbitration
Action, against two former officers of Champion, Equus, and another former Champion shareholder. The suit alleged breaches of
fiduciary duty against Champion&rsquo;s former officers for hiring undocumented workers that were discovered as a result of an
investigation by the U.S. Immigration and Customs Enforcement agency (&ldquo;ICE&rdquo;) into Atrium&rsquo;s hiring practices.
The suit also sought indemnification under the SPA from these officers, Equus, and another former Champion shareholder, for a
payment of $2.0 million made to ICE in settlement of the investigation and associated legal costs, as well as for claimed lost
profits as a result of the investigation.</P>

<P STYLE="font: 10pt/normal Times New 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 February 4, 2015,
without admitting to any liability on the part of Equus, we entered into a settlement agreement with Atrium and its
associated companies. 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, we agreed to pay $500,000, in complete settlement of the lawsuit,
as being in the best interests of the Fund and its shareholders. This amount was accrued as of December 31, 2014 in the
accompanying financial statements. The settlement payment was made on February 6, 2015. Atrium filed a motion to dismiss the lawsuit
with prejudice on February 4, 2015.</P>

<P STYLE="font: 10pt/normal Times New 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 and included in the Statement of Operations in 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 and included in the Statement of
Operations in 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"></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">From time to time, the Fund is also
a party to certain proceedings incidental to the normal course of our business including the enforcement of our rights under contracts
with our portfolio companies. While the outcome of these legal proceedings cannot at this time be predicted with certainty, we
do not expect that these proceedings will have a material effect upon the Fund&rsquo;s financial condition or results of operations.</P>



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




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

<P STYLE="font: 10pt/0 Times New Roman, Times, Serif; margin: 0 0 10pt"><B>(7) PORTFOLIO SECURITIES &nbsp;</B></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>2014 Portfolio Activity</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">During the year ended December 31, 2014,
we made a capital infusion of $0.3 million relating to Spectrum. We also received a semi-annual interest payment
of $0.04 million in cash and $0.2 million in the form of PIK&rsquo;d interest in respect of our &euro;1.2 million [$1.5 million]
in OPG notes. On May 14, 2014, we sold to MVC 2,112,000 newly-issued shares of the Fund&rsquo;s common stock in exchange for 395,839
shares of MVC (see &ldquo;<I>Significant Events&minus;Plan of Reorganization&rdquo;</I> above). During the year ended December 31, 2014, we also
received 9,129 shares of MVC in the form of dividend payments.</P>


<P STYLE="font: 10pt/normal Times New 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, 2014 (in thousands):</P>

<P STYLE="font: 10pt/normal Times New 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="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; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%; text-align: left">MVC Capital, Inc.</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">524</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">5,075</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">107</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">5,706</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Orco Property Group</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">171</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">171</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">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">269</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">269</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; 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">524</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">5,075</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">269</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">278</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">6,146</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27pt">During 2014, we realized capital gains
of $0.7 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: left; border-bottom: Black 1pt solid; vertical-align: bottom">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="width: 18%; text-align: left">Orco Property Group</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 18%; text-align: left">Real estate</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="width: 16%; text-align: left; vertical-align: bottom">Non-affiliate</TD><TD STYLE="width: 1%; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 17%">Disposition</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 15%; text-align: right">(63</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">MVC Capital, Inc.</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">Financial services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom">Non-affiliate</TD><TD STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD>&nbsp;</TD>
    <TD>Share exchange</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">724</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">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 STYLE="text-align: left; vertical-align: bottom">&nbsp;</TD><TD 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">(1</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-family: Helv; text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font-family: Helv; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Helv; text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="font-family: Helv; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Helv; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-family: Helv; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-family: Helv; text-align: left; vertical-align: bottom">&nbsp;</TD><TD STYLE="font-family: Helv; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="font-family: Helv; 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">660</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="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: 24.5pt">During 2014, we recorded a
net change in unrealized depreciation of $0.3 million, to arrive at net unrealized depreciation of $3.6 million as of
December 31, 2014. 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="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 4%; padding-left: 4.4pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">(i)</FONT></TD>
    <TD STYLE="width: 1%; padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="margin-top: 0; margin-bottom: 0; width: 95%"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase
in fair value of our holding in Equus Energy of $1.8 million due to an increase in comparable transactions for mineral leases,
increased oil and gas production, as well as additional proved developed producing and proved developed producing behind-pipe
reserves from new drilling and recompletion activities;</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; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">(ii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="margin-top: 0; margin-bottom: 0"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Decrease
in fair value of Equus Media Development Company, LLC of $0.1 million due to a net operating loss for the period equal to the
amount of the decrease;</FONT></P>
                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 4.4pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">(iii)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="margin-top: 0; margin-bottom: 0"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Decrease
in fair value of MVC of $1.7 million due to the decline in the stock price of MVC;</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; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">(iv)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="margin-top: 0; margin-bottom: 0"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Decrease
in fair value of our holding of OPG Notes of $0.1 million due to adverse changes in the USD-EUR exchange rate; 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; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">(v)</FONT></TD>
    <TD STYLE="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Increase in fair value of our shareholding in PalletOne, Inc. of $0.7 million due to an improvement in the industry sector for packaging companies and continued revenue and earnings growth.</FONT></TD></TR>
</TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</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 made a capital infusion 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"><B>&nbsp;</B></P>

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

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Investment Activity</B></FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>New Investments</B></FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Existing Investments</B></FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Portfolio Company</B></FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Cash</B></FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Non-Cash</B></FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Follow-On</B></FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>PIK</B></FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Total</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Security Monitor Holdings,
    LLC</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">500</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="width: 9%; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">500</FONT></TD>
    <TD STYLE="width: 1%; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Spectrum Management, LLC</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">310</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">310</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">500</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">310</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">810</FONT></TD>
    <TD STYLE="line-height: 115%">&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 2013, we realized net 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>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Portfolio Company</B></FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Industry</B></FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Type</B></FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: left; line-height: 115%; vertical-align: bottom"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Transaction Type</B></FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>Realized Gain (Loss)</B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The Bradshaw Group</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Business products and services</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Non-affiliate</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Disposition</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(1,795</FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Infinia Corporation</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Alternative energy</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Non-affiliate</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Disposition</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(8,000</FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: right; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(9,795</FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 10pt 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: 9pt/normal Sans-Serif; margin: 0; color: Red"></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 arrive at net unrealized depreciation of $3.9 million as of 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>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(i)</font></td>
    <td style="width: 1%; padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; width: 94%"><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 Bradshaw 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">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(ii)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><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 Infinia 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; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(iii)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt/115% 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">&nbsp;</P></td></tr>
<tr style="vertical-align: top">
    <td style="padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(iv)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: 10pt/115% 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; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(v)</font></td>
    <td style="padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><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="margin-top: 0; margin-bottom: 0">&nbsp;</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">We originally invested in the bonds
of Orco Germany in April 2011. On May 7, 2012, holders of 72.5% of all Orco Germany bonds approved a joint restructuring of certain
bond debt of Orco Germany 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 we received 1,102,455 OPG shares. The second tranche, consisting
of 7,848,073 OPG shares, was delivered in October 2012, of which we received 471,211 OPG shares. Also in October 2012,
the remaining 15.5% of the Orco Germany bonds held by each bondholder was converted into 6-year OPG Notes with a face value of
&euro;20.0 million bearing cash and PIK interest each at 5% per annum year period commencing in 2015. Of the total amount of OPG
Notes issued, we 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 in 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"></P>


<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt"><B></B></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, 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="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif"><B>Investment Activity</B></FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif"><B>New Investments</B></FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif"><B>Existing Investments</B></FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif"><B>Portfolio Company</B></FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif"><B>Cash</B></FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif"><B>Non-Cash</B></FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif"><B>Follow-On</B></FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif"><B>PIK</B></FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: black 1pt solid; text-align: center; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% 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-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">Equus Energy, LLC</FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">&mdash; </FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">&mdash; </FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">6,800</FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">&mdash; </FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">6,800</FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="width: 40%; padding-left: 5.4pt; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">Orco Property Group S.A.</FONT></TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">&mdash; </FONT></TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">&mdash; </FONT></TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">&mdash; </FONT></TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">301</FONT></TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 9%; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">301</FONT></TD>
    <TD STYLE="width: 1%; font-size: 12pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="padding-left: 5.4pt; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">Spectrum Management, LLC</FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">&mdash; </FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">&mdash; </FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">139</FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-left: 5.4pt; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">&mdash; </FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">139</FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <TD STYLE="padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; padding-left: 5.4pt; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">&mdash; </FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; padding-left: 5.4pt; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">&mdash; </FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; padding-left: 5.4pt; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">6,939</FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; padding-left: 5.4pt; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; padding-left: 5.4pt; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">301</FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 5.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; font-size: 9pt; line-height: 115%"><FONT STYLE="font: 9pt/115% Times New Roman, Times, Serif">7,240</FONT></TD>
    <TD STYLE="font-size: 12pt; line-height: 115%">&nbsp;</TD></TR></TABLE>


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

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

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Portfolio Company</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Industry</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Type</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <TD STYLE="border-bottom: black 1pt solid; text-align: left; line-height: 115%; vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif"><b>Transaction Type</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Realized Gain (Loss)</b></font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">ConGlobal Industries Holding, Inc.</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Shipping products and services</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Control</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Disposition</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(4,114</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Sovereign Business Forms, Inc.</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Business products and services</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Control</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Disposition</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(1,073</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Orco Property Group</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Real estate</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Non-affiliate</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Disposition</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2,318</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: white">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Various others</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="2" style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Disposition</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">72</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<tr style="vertical-align: bottom; background-color: #CCEEFF">
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="border-bottom: black 2.25pt double; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(2,797</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">During 2012, we recorded a
net change in unrealized depreciation of $0.2 million, to arrive at net unrealized depreciation of $17.2 million as of
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="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(i)</font></td>
    <td style="width: 1%; padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; width: 94%"><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></td></tr>
</table>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(ii)</font></td>
    <td style="width: 1%; padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; width: 94%"><font style="font: 10pt/115% 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="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="width: 5%; padding-left: 4.4pt; text-align: right; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(iii)</font></td>
    <td style="width: 1%; padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</td>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; width: 94%"><font style="font: 10pt/115% 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></td></tr>
</table>

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

<P STYLE="margin-top: 0; margin-bottom: 0"></P>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 5%; padding-left: 4.4pt; text-align: right; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">(iv)</FONT></TD>
    <TD STYLE="width: 1%; padding-left: 4.4pt; font-size: 12pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; width: 94%"><FONT STYLE="font: 10pt/115% 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; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0"><B>(8) 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 132 producing and non-producing oil and gas wells. The working interests include
associated development rights of approximately 21,620 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: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">The wells are operated by a number
of experienced operators, including Chevron USA, Inc., which has operating responsibility for all of Equus Energy&rsquo;s 40 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. 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: 27.5pt"></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>



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

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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"><I>Revenue and Income</I>. During
2014, Equus Energy&rsquo;s revenue, operating revenue less direct operating expenses, and net income (loss) were $2,469,043,
$1,321,470, and $93,034, respectively, as compared to revenue, operating revenue less direct operating expenses, and net income
(loss) of $2,555,475, $1,314,816, and ($230,306), respectively, for 2013.</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"><I>Capital Expenditures</I>. During
2014, Equus Energy invested $499,245 in several drilling and recompletion projects. The principal projects are described below:</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>

<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>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45.35pt"></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>Recompletion of the EB Cope #10 Well.</U> Recompletion of the EB
Cope #10 gas well to the Wolfcamp shale oil formation was completed in July 2014 at a cost of $314,800 net to Equus Energy and
began production on July 27, 2014. This well was expected to produce 22 BOPD and 25 MCF initial production and add 10,165 BBL in
reserves net to Equus Energy. Estimated total production of oil and gas for this well, net to Equus Energy, during 2014 was approximately
5,000 BBL and 2,600 MCF of gas. The EB Cope lease concerns approximately 640 of Equus Energy&rsquo;s 2,400 leasehold acres in the
Conger Field.</FONT></TD></TR></TABLE>


<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>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>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45.35pt"></TD><TD><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><U>Recompletion of the Gray #2 Oil Well</U>. In June 2014, Equus Energy
consented to participate in the recompletion of the Gray #2 Oil Well. The recompletion was finalized at the end of July and additional
funds were requested by the operator in August 2014 to install sand control. Total capital expenditures to Equus Energy (which
include the recompletion costs as well as the sand control) were approximately $51,000 during 2014. The operator has projected
the addition of 3,000 BBL in additional reserves net to Equus Energy.</FONT></TD></TR></TABLE>



<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>

<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 using a discounted cash flow analysis based on a reserve report prepared for Equus Energy by Lee Keeling &amp;
Associates, Inc., an independent petroleum engineering firm, the transactions and values of comparable companies in this sector,
and the estimated value of leasehold mineral interests associated with the acreage held by Equus Energy. A valuation of Equus
Energy was performed by a third-party valuation firm, who recommended a value range of Equus Energy consistent with the fair value
we ascribed in our Schedule of Investments on page <FONT STYLE="background-color: White">39</FONT>.</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"></P>

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<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: 27.35pt"><FONT STYLE="font-size: 10pt">Below
is summarized unaudited consolidated financial information for Equus Energy as of December 31, 2014 and 2013 and for the years
ended December 31, 2014 and 2013 (in thousands):</FONT><FONT STYLE="font-size: 9pt">&nbsp;</FONT></P>

<P STYLE="font: 9pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 27.35pt"></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">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: bold; text-align: center">December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center"></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"><B>2014</B></TD><TD STYLE="font-weight: bold; text-align: center"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid"><B>2013</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: normal; text-align: center; padding-bottom: 1pt; font-style: normal">(Unaudited)</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 COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&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: 70%; text-align: left; padding-left: 10pt">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">613</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">486</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Accounts receivable</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">288</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">Prepaid expenses/deposits</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">35</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Total current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">958</TD><TD STYLE="text-align: left">&nbsp;</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></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">8,200</TD><TD STYLE="text-align: left">&nbsp;</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></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">(1,768</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">(983</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 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">6,432</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">6,717</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">Other non-current investment</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">193</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt; 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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,583</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,491</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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: 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">$</TD><TD STYLE="text-align: right">71</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">324</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 the Fund</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">611</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">364</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">682</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <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">183</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">178</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total 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">865</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">866</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"></TD><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; padding-left: 20pt">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">6,718</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">6,625</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; 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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,583</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,491</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



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

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-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-top: 0; text-align: center; margin-bottom: 0"><U>EQUUS ENERGY, LLC. </U></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 45pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 70%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center"></TD><TD STYLE="padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="7" STYLE="text-align: center; vertical-align: bottom"><B>Year ended December 31,</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">2014</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">2013</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-weight: normal; text-align: center; padding-bottom: 1pt; vertical-align: bottom; font-style: normal">(Unaudited)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: left">Operating revenue</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">2,469</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">2,556</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Operating expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></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">1,148</TD><TD STYLE="text-align: left">&nbsp;</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">790</TD><TD STYLE="text-align: left">&nbsp;</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">438</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">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; padding-bottom: 1pt">Total operating expenses</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">2,376</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">2,765</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">Operating income (loss) before income tax expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">93</TD><TD STYLE="text-align: left">&nbsp;</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: White">
    <TD STYLE="text-align: left; padding-left: 10pt; padding-bottom: 1pt">Income tax</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">&mdash;&nbsp;&nbsp;</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">(21</TD><TD STYLE="text-align: left; padding-bottom: 1pt">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Net income (loss)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">93</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(230</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>

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

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<P STYLE="margin-top: 0; margin-bottom: 0">&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 Statements of Cash Flows</U></P>

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

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: normal 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center"></TD><TD>&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; vertical-align: bottom"><B>Year ended December 31, </B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center"></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom"><B> 2014</B></TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid"><B>&nbsp;</B></TD>
    <TD COLSPAN="3" STYLE="text-align: center; vertical-align: bottom; border-bottom: Black 1pt solid"><B> 2013</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center"></TD><TD>&nbsp;</TD>
    <TD COLSPAN="7" STYLE="text-align: center; vertical-align: bottom">(Unaudited)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Cash flows from operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 60%; text-align: left">Net loss</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 17%; text-align: right">93</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 17%; text-align: right">(230</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 10pt">Adjustments to reconcile net loss to</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">net cash provided by operating activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 30pt">Depletion, depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">790</TD><TD STYLE="text-align: left">&nbsp;</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: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Changes in operating assets and liabilities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 20pt">Accounts receivable and other</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(57</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(165</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Affiliate payable/receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">247</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">353</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">Accounts payable and other</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(253</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">165</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 30pt">Net cash provided by operating activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">820</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">1,112</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">Cash flows from investing activities:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Investment in oil &amp; gas properties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(500</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(801</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: 10pt">Other 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">(193</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: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Net cash used in investing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(693</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">(801</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net increase in cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">127</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">311</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">486</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">175</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">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">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">613</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">486</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-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"><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 and $1.0 million for the years ended December 31,
2014 and December 31, 2013, respectively.</P>

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

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

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"></P>




<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"></P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-align: center"><B></B></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 cellspacing="0" cellpadding="0" style="width: 100%">
<tr style="vertical-align: top">
    <td style="width: 48px">&nbsp;</td>
    <td style="width: 48px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt 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 Times New Roman, Times, Serif">As of December 31, 2014, 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>
<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: 48px">&nbsp;</td>
    <td style="width: 48px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt 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 Times New Roman, Times, Serif">The cost of investments in unproved and unevaluated properties excluded from the costs being amortized; 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: 48px">&nbsp;</td>
    <td style="width: 48px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><font style="font: 10pt 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 Times New Roman, Times, Serif">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 years ended December 31, 2014 and 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">The costs of certain unevaluated leasehold
acreage and certain wells being drilled are not amortized. The Company excludes all costs until proved reserves are found or until
it is determined that the costs are impaired. Costs not amortized are periodically assessed for possible impairment or reduction
in value. If a reduction in value has occurred, costs being amortized are increased accordingly.&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-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"><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 consolidated
financial 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 DD&amp;A</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: 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"><B><U>Income Taxes</U></B> --A limited liability company is not
subject to the payment of federal income taxes as components of its income and expenses flow through directly to the members. However,
the Company is subject to certain state income taxes. Texas margin tax applies to legal entities conducting business in Texas.
The margin tax is based on our Texas sourced taxable margin. The tax is calculated by applying a tax rate to a base that considers
both revenue and expenses and therefore has the characteristics of an income tax. Taxable Subsidiaries may generate income tax
expense because of the Taxable Subsidiaries&rsquo; ownership of the portfolio companies. We reflect any such income tax expense
on our Statements of Operations.&nbsp; As of December 31, 2014 and December 31, 2013, the Company recorded $0 and $22 thousand
in federal income taxes, respectively.&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">&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"><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.</P>

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

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



<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(9) 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 were effective for the Fund  beginning in the first quarter of 2014. Our adoption of ASU 2013-08 did not effect our
financial position or 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/115% Times New Roman, Times, Serif; margin: 0"><B>(10) SUBSEQUENT EVENTS </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 events:</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, 2015, we sold U.S. Treasury Bills for $15.0 million and repaid our year-end margin loan</FONT>.</P>



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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">On January 6, 2015, we sold our interests in Spectrum to 5th
Element as described under &ldquo;<I>Portfolio Securities</I>&rdquo; above. The purchase price of $3.9 million paid by 5th Element
consisted of $3.0 million in cash and a 1-year subordinated note in the original principal amount of $0.9 million, bearing interest
of 14% per annum.</P>

<P STYLE="font: 10pt/normal Times New 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 6, 2015, in connection with
the sale of our interest in Spectrum, our $0.5 million loan to SMH, together with all accrued interest amounting to approximately
$0.1 million, was collected.</P>

<P STYLE="font: 10pt/normal Times New 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 30, 2015, we received a partial
redemption payment in respect of our holding of OPG Notes in the amount of &euro;36,587 [$41,478].</P>

<P STYLE="font: 10pt/normal Times New 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 February 4, 2015, we entered into
a settlement agreement with Atrium Companies, Inc. (&ldquo;Atrium&rdquo;) and its subsidiary Champion Window, Inc. 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, we agreed to pay $500,000, in complete settlement of a lawsuit commenced against the Fund by Atrium. The settlement
payment was made on February 6, 2015 (see Note 6)<I> </I>and has been accrued as of December 31, 2014.</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">On February 20, 2015, we sold our OPG
Notes at a discount of 23% to their par value, receiving $1.0 million in cash and a realized gain 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"><B>(11) SELECTED QUARTERLY DATA </B></P>

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

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"></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">(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, 2014</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">&nbsp;</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">&nbsp;</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">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2014</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; 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">$</TD><TD STYLE="width: 9%; text-align: right">256</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">64</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">109</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">536</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">965</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">&nbsp;</TD><TD STYLE="text-align: right">(468</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(714</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(433</TD><TD STYLE="text-align: left">)</TD><TD></TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(803</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,418</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">&nbsp;</TD><TD STYLE="text-align: right">(537</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,011</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(432</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,409</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,367</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Basic and diluted earnings (loss) 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">&nbsp;</TD><TD STYLE="text-align: right">(0.05</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">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.04</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.11</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.11</TD><TD STYLE="text-align: left">)</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">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <TD STYLE="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif"><B STYLE="text-decoration: none">(in thousands, except per share amounts)</b></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="19" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Year Ended December 31, 2013</font></td></tr>
<tr style="vertical-align: bottom">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Quarter Ended</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Quarter Ended</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Quarter Ended</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Quarter Ended</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">March 31,</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">June 30,</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">September 30,</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">December 31,</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2013</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2013</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2013</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">2013</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td colspan="3" style="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total</font></td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="width: 40%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Total investment income (loss)</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(95</font></td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">14</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">35</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">53</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td>
    <td style="width: 1%; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">$</font></td>
    <td style="width: 9%; text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">7</font></td>
    <td style="width: 1%; line-height: 115%">&nbsp;</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Net investment loss</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(771</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(1,365</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(588</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(406</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(3,130</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Increase (decrease) in net assets resulting</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<TR STYLE="vertical-align: bottom; background-color: White">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from operations</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(1,460</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(1,249</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(794</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">3,845</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">342</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">Basic and diluted earnings (loss) per share </font><font style="font-family: Times New Roman, Times, Serif"><sup>(1)</sup></font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.14</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.12</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">(0.08</font></td>
    <td style="line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">)</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.36</font></td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="line-height: 115%">&nbsp;</td>
    <td style="text-align: right; line-height: 115%"><font style="font: 10pt Times New Roman, Times, Serif">0.02</font></td>
    <td style="line-height: 115%">&nbsp;</td></tr>
</table>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&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: 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">&nbsp;</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">&nbsp;</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">&nbsp;</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">&nbsp;</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">&nbsp;</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">&nbsp;</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"></P>

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<P STYLE="font: 7.5pt/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_014"></A>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; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_015"></A>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; text-indent: 0.5in"><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">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0"></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, 2014. 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; text-indent: 0.5in"><B></B></P>



<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><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, 2014, 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 (COSO) in &ldquo;Internal Control-Integrated Framework&rdquo; published in 2013. 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; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_016"></A>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; text-indent: 0.5in"></P>

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    <!-- Field: /Page -->

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a_017"></A><B>PART III </B></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><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 2015 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, 2015 (the &ldquo;2015 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, 700 Louisiana
Street, 48<SUP>th</SUP> Floor, Houston, TX 77002. 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; text-indent: 0.5in"><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 2015 Proxy Statement.</P>

<P STYLE="font: 10pt/normal Times 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><A NAME="a_020"></A>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 2015 Proxy Statement.</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"></P><P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B><A NAME="a_021"></A>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 2015 Proxy Statement.</P>

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



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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a_022"></A><B>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 2015 Proxy Statement.</P>

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

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<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"><B><A NAME="a_023"></A>PART IV </B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><A NAME="a_024"></A><B>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></B></P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="background-color: White">
    <TD STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 22.5pt"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif; color: Black"><B>(a)(1)
    The following financial statement schedules are filed herewith:</B></FONT></td>
    <TD STYLE="vertical-align: bottom; padding-left: 0.1in; line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<TR STYLE="background-color: White">
    <TD STYLE="line-height: 115%; font-size: 12pt"><FONT STYLE="color: Black">&nbsp;</FONT></td>
    <TD STYLE="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -12pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif; color: Black"><A HREF="#a_025">Report of Independent Registered Public Accounting Firm&mdash;BDO USA, LLP</A></FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><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; text-indent: -12pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif; color: Black"><A HREF="#a_026">Schedule 12-14 Investments in and Advances to Affiliates</A></FONT></td>
    <TD NOWRAP STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">64</font></td></tr>
</table>
<P STYLE="font: 10pt/normal 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">&nbsp;</P>

<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">&nbsp;</P>

<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">&nbsp;</P>

<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">&nbsp;</P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B><A NAME="a_025"></A>Report of Independent Registered Public
Accounting Firm </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">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; text-indent: 0.5in"><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 sheet of Equus Total Return, Inc. (a Delaware corporation), including the schedule of investments, as
of December 31, 2014 and the related statements of operations, changes in net assets and cash flows for the year ended December
31, 2014 and the selected per share data and ratios for the year ended December 31, 2014, and have issued our report thereon dated
<FONT STYLE="background-color: White">March 30, 2015</FONT> (included elsewhere in this Form 10-K). Our audit also included the
Schedule 12-14 listed in Item 15(a)(1) 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 audit.</FONT></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">/s/ BDO US, 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"><FONT STYLE="background-color: White">March 30, 2015</FONT></P>

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

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

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

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

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

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

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt; text-indent: 0.5in"><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/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"><A NAME="a_026"></A><B>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"><B>&nbsp;</B></P>

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

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 7.5pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; font-style: italic; width: 22%">(in thousands)</td>
    <td style="width: 3%">&nbsp;</td>
    <td style="width: 19%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 12%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 12%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 8%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 8%">&nbsp;</td>
    <td style="width: 1%">&nbsp;</td>
    <td style="width: 11%">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">Year Ended</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">December 31, 2014</P></td>
    <td>&nbsp;</td>
    <td style="text-align: center">&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Portfolio Company</td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">Investment <font style="font: normal 10pt Times New Roman, Times, Serif"><b><sup>(a)</sup></b></font></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center">Amount
    of Interest or Dividend Credited to Income</td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0">As of</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">December 31, 2013</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Fair Value</P></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Gross Additions<font style="font: normal 10pt Times New Roman, Times, Serif"><b><sup>(b)</sup></b></font></td>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Gross Reductions<font style="font: normal 10pt Times New Roman, Times, Serif"><b><sup>(c)</sup></b></font></td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0">As of</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">December 31,</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">2014 Fair Value</P></td></tr>
<tr style="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left; vertical-align: bottom">Control investments:&nbsp;&nbsp;Majority-owned</td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 0.5pt solid; text-align: left">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="font-size: 7.5pt; vertical-align: top">Equus Energy, LLC</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top">Member interest (100%)</td>
    <td style="vertical-align: bottom">$</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom">$</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,000</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right">1,800</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom">$</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right">9,800</td></tr>
<tr style="vertical-align: bottom">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td colspan="2" style="font-size: 7.5pt; vertical-align: top">Equus Media Development Company, LLC</td>
    <td style="font-size: 7.5pt; vertical-align: top">Member interest (100%)</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;216</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;215</td></tr>
<tr>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="font-size: 7.5pt; vertical-align: top">Spectrum Management, LLC</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top">285,000 units of Class&nbsp;A member interest</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top; text-align: center">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td></tr>
<TR STYLE="background-color: rgb(204,238,255)">
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: bottom">16% subordinated promissory note <font style="font: normal 7.5pt Times New Roman, Times, Serif"><sup>(d) (e)</sup></font></td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;580</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,889</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;269</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,158</td></tr>
<tr>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="font-size: 7.5pt; vertical-align: top; text-align: right">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</td>
    <td style="vertical-align: bottom">&nbsp;</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-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; text-align: left">Total Control investments:&nbsp;&nbsp;Majority-owned</td>
    <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">&nbsp;</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;580</td>
    <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">&nbsp;</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,105</td>
    <td style="vertical-align: bottom; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid">&nbsp;</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">2,068</td>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; vertical-align: top">&nbsp;</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">&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <TD STYLE="text-align: right; border-top: Black 0.5pt solid; border-bottom: Black 0.5pt solid; vertical-align: top">&nbsp;</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">13,173</td></tr>
<tr>
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; border-bottom: Black 1pt solid; text-align: left">Total Control investments</td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right; border-bottom: Black 1pt solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;580</td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right; border-bottom: Black 1pt solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11,105</td>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right; border-bottom: Black 1pt solid">2,069</td>
    <TD STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: top">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right; border-bottom: Black 1pt solid">&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</td>
    <TD STYLE="text-align: right; border-bottom: Black 1pt solid; vertical-align: top">&nbsp;</td>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right; border-bottom: Black 1pt solid">13,173</td></tr>

<TR STYLE="background-color: rgb(204,238,255)">
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt; font-weight: bold">Affiliate Investments</FONT></TD>
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     </TR>
<TR>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     </TR>
<TR STYLE="background-color: rgb(204,238,255)">
     <TD STYLE="text-align: left; vertical-align: top"><FONT STYLE="font-size: 7.5pt">PalletOne, Inc.</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">350,000 shares of common stock</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7.5pt">250</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7.5pt">710</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</TD>
     <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top"><FONT STYLE="font-size: 7.5pt">960</FONT></TD>
     </TR>
<TR>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     </TR>
<TR STYLE="background-color: rgb(204,238,255)">
     <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">Total Affiliate investments</FONT></TD>
     <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</TD>
     <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">250</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">710</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid">&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</TD>
     <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">960</FONT></TD>
     </TR>
<TR>
     <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">Total Investments In and Advances to Affiliates</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">580</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">11,355</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid">2,778</TD>
     <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid">&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</TD>
     <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 7.5pt">&nbsp;</FONT></TD>
     <TD STYLE="text-align: right; vertical-align: top; border-bottom: Black 1pt solid">14,133</TD>
     </TR>
</TABLE>


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

<P STYLE="font: 7pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 7.5pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&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>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 23px; text-align: right; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif">(a)</font></td>
    <td style="width: 7px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="text-align: justify; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% 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, 2014.</font></td></tr>
<tr style="vertical-align: top">
    <td style="text-align: right; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif">(b)</font></td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="text-align: justify; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% 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="text-align: right; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif">(c)</font></td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="text-align: justify; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% 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="text-align: right; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif">(d)</font></td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="text-align: justify; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif">Accrued income is impaired.</font></td></tr>
<tr style="vertical-align: top">
    <td style="text-align: right; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif">(e)</font></td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="text-align: justify; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% 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="text-align: right; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif">**</font></td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="text-align: justify; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% 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; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-indent: 0.5in">&nbsp;</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"><B>(a)(2) Exhibits </B></P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 0px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">3.</font></td>
    <td style="padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Articles of Incorporation and by-laws.</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 30px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(a)</font></td>
    <td style="padding-top: 4.5pt; line-height: 115%"><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; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 30px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(b)</font></td>
    <td style="padding-top: 4.5pt; line-height: 115%"><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; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 30px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(c)</font></td>
    <td style="padding-top: 4.5pt; line-height: 115%"><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>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 0px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 9pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">10.</font></td>
    <td style="padding-top: 9pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Material Contracts.</font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 30px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(c)</font></td>
    <td style="padding-top: 4.5pt; line-height: 115%"><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; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 30px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(d)</font></td>
    <td style="padding-top: 4.5pt; line-height: 115%"><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; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 30px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(e)</font></td>
    <td style="padding-top: 4.5pt; line-height: 115%"><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>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 30px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(f)</font></td>
    <td style="padding-top: 4.5pt; line-height: 115%"><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; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 0px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 9pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">31.</font></td>
    <td style="padding-top: 9pt; line-height: 115%"><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; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 30px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(1)</font></td>
    <td style="padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><U>C</U></FONT><A HREF="ex31_1johnhardy.htm"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif; color: blue">ertification
    by Chief Executive Officer</FONT></A></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 30px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(2)</font></td>
    <td style="padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="ex31_2lsherylhudson.htm">Certification by Chief Financial Officer</A></font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 0px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 9pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">32.</font></td>
    <td style="padding-top: 9pt; line-height: 115%"><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; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 30px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(1)</font></td>
    <td style="padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="ex32_1johnhardy.htm">Certification by Chief Executive Officer</A></font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 0.5in">&nbsp;</P>

<table cellspacing="0" cellpadding="0" style="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%">
<tr style="vertical-align: top">
    <td style="width: 30px; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="width: 30px; padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">(2)</font></td>
    <td style="padding-top: 4.5pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif; color: blue"><A HREF="ex32_2lsherylhudson.htm">Certification by Chief Financial Officer</A></font></td></tr>
</table>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-indent: 0.5in"></P>

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<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0 0 6pt; text-indent: 0.5in">&nbsp;</P>

<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="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
    <td style="padding-left: 0.1in; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 0.1in; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td colspan="2" style="line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">EQUUS TOTAL RETURN, INC.</font></td></tr>
<tr>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Date: March 30, 2015</font></td>
    <td style="padding-left: 0.1in; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 0.1in; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><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; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 0.1in; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 0.1in; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="text-align: center; line-height: 115%; font-size: 7.5pt"><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; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="vertical-align: bottom; padding-left: 0.1in; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="vertical-align: top; padding-left: 0.1in; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 7.5pt"><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="font: 10pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
    <td nowrap style="width: 29%; border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Signature</b></font></td>
    <td style="width: 57%; border-bottom: black 1pt solid; padding-left: 0.1in; text-align: center; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Title</b></font></td>
    <td style="border-bottom: black 1pt solid; padding-left: 0.1in; text-align: center; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Date</b></font></td></tr>
<tr>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><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="padding-left: 9pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director</font></td>
    <td nowrap style="text-align: center; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 30, 2015</font></td></tr>
<tr>
    <td style="text-align: center; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Fraser Atkinson</b></font></td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><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="padding-left: 9pt; line-height: 115%"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif">Director</FONT></td>
    <td nowrap style="text-align: center; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 30, 2015</font></td></tr>
<tr>
    <td style="text-align: center; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Alessandro Benedetti</b></font></td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr style="vertical-align: bottom">
    <td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><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="padding-left: 9pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director</font></td>
    <td nowrap style="text-align: center; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 30, 2015</font></td></tr>
<tr>
    <td style="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Richard F. Bergner</b></font></td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><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; padding-left: 9pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director, Secretary and Chief Compliance Officer</font></td>
    <td nowrap style="vertical-align: bottom; text-align: center; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 30, 2015</font></td></tr>
<tr>
    <td style="text-align: center; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Kenneth I. Denos</b></font></td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><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="padding-left: 9pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director</font></td>
    <td nowrap style="text-align: center; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 30, 2015</font></td></tr>
<tr>
    <td style="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Gregory J. Flanagan</b></font></td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: bottom; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><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="padding-left: 9pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director</font></td>
    <td nowrap style="text-align: center; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 30, 2015</font></td></tr>
<tr>
    <td style="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Henry W. Hankinson</b></font></td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><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="padding-left: 9pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director</font></td>
    <td nowrap style="text-align: center; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 30, 2015</font></td></tr>
<tr>
    <td style="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Robert L. Knauss</b></font></td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr style="vertical-align: top">
    <td style="border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><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="padding-left: 9pt; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">Director</font></td>
    <td nowrap style="text-align: center; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 30, 2015</font></td></tr>
<tr>
    <td style="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>Bertrand des Pallieres</b></font></td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><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; padding-left: 9pt; line-height: 115%"><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; text-align: center; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 30, 2015</font></td></tr>
<tr>
    <td style="vertical-align: bottom; text-align: center; line-height: 115%; font-size: 7.5pt"><font style="font: 7.5pt/115% Times New Roman, Times, Serif"><b>John A. Hardy</b></font></td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="padding-left: 9pt; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
<tr>
    <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 115%; font-size: 11pt"><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; padding-left: 9pt; line-height: 115%"><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; text-align: center; line-height: 115%"><font style="font: 10pt/115% Times New Roman, Times, Serif">March 30, 2015</font></td></tr>
<tr style="vertical-align: top">
    <td style="text-align: center; line-height: 115%; font-size: 7.5pt"><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; line-height: 115%; font-size: 12pt">&nbsp;</td>
    <td nowrap style="line-height: 115%; font-size: 12pt">&nbsp;</td></tr>
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<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>ex31_1johnhardy.htm
<DESCRIPTION>302 CERTIFICATION JOHN HARDY
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"><B><A HREF="f10k_equus2014.htm">EXHIBIT 31.1</A></B><B> </B></P>

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

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

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    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">I have reviewed this Annual Report on Form 10-K of Equus Total Return, Inc.;</FONT></TD></TR>
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    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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;</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: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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;</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: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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:</FONT></TD></TR>
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    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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;</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: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">[Reserved]</FONT></TD></TR>
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    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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;</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: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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;</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: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">5.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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):</FONT></TD></TR>
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    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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</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: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s internal controls.</FONT></TD></TR>
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0">Date: March&nbsp;30, 2015</P>

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    <TD>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">/s/ JOHN A. HARDY</P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
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        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 12pt; text-indent: -12pt"><B>John A. Hardy</B></P>
        <P STYLE="font: 10pt/normal 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-31.2
<SEQUENCE>3
<FILENAME>ex31_2lsherylhudson.htm
<DESCRIPTION>302 CERTIFICATION L'SHERYL HUDSON
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"><B><A HREF="f10k_equus2014.htm">EXHIBIT 31.2</A></B><B> </B></P>

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

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

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    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">I have reviewed this Annual Report on Form 10-K of Equus Total Return, Inc.;</FONT></TD></TR>
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    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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;</FONT></TD></TR>
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    <TD STYLE="width: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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;</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: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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:</FONT></TD></TR>
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    <TD STYLE="width: 73px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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;</FONT></TD></TR>
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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">[Reserved]</FONT></TD></TR>
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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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;</FONT></TD></TR>
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<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: 73px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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;</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: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">5.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">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):</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: 73px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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</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: 73px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s internal controls.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0">Date: March&nbsp;30, 2015</P>

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<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">/s/ L&rsquo;SHERYL D. HUDSON</P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
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    <TD>
        <P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0 0 0.75pt 12pt; text-indent: -12pt"><B>Chief Financial Officer</B></P></TD></TR>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>ex32_1johnhardy.htm
<DESCRIPTION>906 CERTIFICATION JOHN HARDY
<TEXT>
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"><B><A HREF="f10k_equus2014.htm">EXHIBIT 32.1</A></B><B> </B></P>

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

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

<P STYLE="font: 10pt/normal 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, 2014
(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>

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    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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</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: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0">Dated: March&nbsp;30, 2015</P>

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

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<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">/s/ JOHN A. HARDY</P>
<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin-top: 1pt; margin-bottom: 1pt"><DIV STYLE="font-size: 1pt; border-top: black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page --></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0 0 0 12pt; text-indent: -12pt"><B>John A. Hardy </B></P>
        <P STYLE="font: 10pt/normal 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>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>ex32_2lsherylhudson.htm
<DESCRIPTION>906 CERTIFICATION L'SHERYL HUDSON
<TEXT>
<HTML>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right"><B><A HREF="f10k_equus2014.htm">EXHIBIT 32.2</A></B></P>

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

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

<P STYLE="font: 10pt/normal 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, 2014
(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>

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    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">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</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: 33px">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 10pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt 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 Times New Roman, Times, Serif">The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0">Dated: March&nbsp;30, 2015</P>

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

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    <TD STYLE="width: 100%; font: 1pt/115% Calibri, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">/s/ L&rsquo;SHERYL D. HUDSON</P>
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    <TD>
        <P STYLE="font: 10pt/normal 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/normal Times New Roman, Times, Serif; margin: 0 0 0.75pt 12pt; text-indent: -12pt"><B>Chief Financial Officer</B></P></TD></TR>
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