<SEC-DOCUMENT>0001391609-20-000034.txt : 20200330
<SEC-HEADER>0001391609-20-000034.hdr.sgml : 20200330
<ACCEPTANCE-DATETIME>20200330171622
ACCESSION NUMBER:		0001391609-20-000034
CONFORMED SUBMISSION TYPE:	10-K
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20191231
FILED AS OF DATE:		20200330
DATE AS OF CHANGE:		20200330

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:		20758326

	BUSINESS ADDRESS:	
		STREET 1:		700 LOUISIANA STREET
		STREET 2:		48TH FLOOR
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77002
		BUSINESS PHONE:		7135290900

	MAIL ADDRESS:	
		STREET 1:		700 LOUISIANA STREET
		STREET 2:		48TH FLOOR
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77002

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EQUUS II INC
		DATE OF NAME CHANGE:	19970422
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-K
<SEQUENCE>1
<FILENAME>f10k_equus123119.htm
<DESCRIPTION>FORM 10-K
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 14pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>UNITED STATES </B></P>

<P STYLE="font: 14pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION
</B></P>

<P STYLE="font: 12pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 18pt/normal Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B>FORM 10-K </B></P>

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

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    <TD STYLE="width: 1%; padding-left: 5.4pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt/115% MS Mincho,serif"><B>&#9746;</B></FONT></TD>
    <TD STYLE="width: 99%; padding-right: 5.4pt; padding-left: 5.4pt; font: 11pt/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, 2019</B></P>

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

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    <TD STYLE="width: 1%; padding-top: 2.25pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt/115% MS Mincho,serif"><B>&#9744;</B></FONT></TD>
    <TD STYLE="width: 99%; padding-top: 2.25pt; font: 11pt/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: 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>


<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 2.35pt; text-align: center; margin-bottom: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.7pt 154.05pt 0 156.95pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><B></B></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>Delaware</B></FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><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 0.6pt; text-align: center"><B>incorporation or organization)</B></P></TD>
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>(I.R.S. Employer Identification No.)</B></FONT></TD></TR>
<TR>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>700 Louisiana St. 48<SUP>th</SUP> Floor, Houston, Texas</B></FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>77002</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>(Address of principal executive offices)</B></FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>(Zip Code)</B></FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.7pt 154.05pt 0 156.95pt; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.7pt 154.05pt 0 156.95pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.7pt 154.05pt 0 156.95pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><B>&nbsp;</B></FONT></p>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><B>(713) 529-0900 </B></P>

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

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

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<TR>
    <TD STYLE="vertical-align: bottom; font: 11pt/115% Calibri, Helvetica, Sans-Serif; text-align: center"><FONT STYLE="font: 10pt/115% Times New Roman, Times, Serif"><B><U>Title of each class</U></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 0.6pt; text-align: center"><B><U>on which registered</U></B></P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: 11pt/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: 11pt/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"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><B>Securities
registered pursuant to Section 12(g) of the Act: None</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.25pt 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Indicate
by check mark if the registrant is </FONT>a <FONT STYLE="letter-spacing: -0.05pt">well-known seasoned issuer, as defined </FONT>in
<FONT STYLE="letter-spacing: -0.05pt">Rule 405 of the Securities Act.</FONT></P>

<P STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; margin: 1.8pt 0 0 5.3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Yes</FONT>
<FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9744;</B></FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT>
<FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9746;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2pt 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Indicate by
check mark if the registrant is not required </FONT>to <FONT STYLE="letter-spacing: -0.05pt">file reports pursuant </FONT>to <FONT STYLE="letter-spacing: -0.05pt">Section
</FONT>13 <FONT STYLE="letter-spacing: -0.05pt">or Section 15(d) of the Act.</FONT></P>

<P STYLE="font: 10pt Calibri, Helvetica, Sans-Serif; margin: 1.75pt 0 0 5.3pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Yes</FONT>
<FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9744;</B></FONT> <FONT STYLE="font-family: Times New Roman, Times, Serif">No</FONT>
<FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9746;</B></FONT></P>

<P STYLE="font: 10pt/97% Times New Roman, Times, Serif; margin: 2.2pt 5.85pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Indicate
by check mark whether the registrant (1) </FONT>has <FONT STYLE="letter-spacing: -0.05pt">filed</FONT> all <FONT STYLE="letter-spacing: -0.05pt">reports
required to be filed by Section 13</FONT> or <FONT STYLE="letter-spacing: -0.05pt">15(d)</FONT> of <FONT STYLE="letter-spacing: -0.05pt">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</FONT> to <FONT STYLE="letter-spacing: -0.05pt">such filing requirements for the past
90 </FONT>days. <FONT STYLE="letter-spacing: -0.05pt">Yes</FONT> <FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9746;</B></FONT>
<FONT STYLE="letter-spacing: -0.05pt">No </FONT><FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9744;</B></FONT></P>

<P STYLE="font: 10pt/97% Times New Roman, Times, Serif; margin: 2.25pt 5.85pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Indicate
by check mark if disclosure of delinquent filers pursuant </FONT>to <FONT STYLE="letter-spacing: -0.05pt">Item 405 of Regulation
S-K </FONT>is <FONT STYLE="letter-spacing: -0.05pt">not contained herein, and will not be contained, to the best</FONT> of <FONT STYLE="letter-spacing: -0.05pt">registrant&rsquo;s
knowledge, in the definitive proxy or information statement incorporated by reference in Part III</FONT> of <FONT STYLE="letter-spacing: -0.05pt">this
10-K. </FONT><FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9744;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 1.95pt 5.85pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Indicate
by check mark whether the registrant is </FONT>a <FONT STYLE="letter-spacing: -0.05pt">large accelerated filer, an accelerated
filer, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">non-accelerated filer, or</FONT> a smaller <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>the <FONT STYLE="letter-spacing: -0.05pt">Exchange Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.25pt 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Large accelerated
filer </FONT><FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9744;&#9;</B></FONT><FONT STYLE="letter-spacing: -0.05pt">Accelerated
filer </FONT><FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9744;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2.05pt 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Non-accelerated
filer</FONT> <FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9746;</B></FONT> <FONT STYLE="letter-spacing: -0.05pt">(Do
not check if</FONT> a <FONT STYLE="letter-spacing: -0.05pt">smaller reporting company)&#9;Smaller reporting company</FONT> <FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9744;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 1.6pt 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Indicate by
check mark whether the registrant is </FONT>a <FONT STYLE="letter-spacing: -0.05pt">shell company (as defined in Rule 12b-2 of
the Act). Yes</FONT> <FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9744;</B></FONT> No <FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9746;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 2pt 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Approximate
aggregate market value of common stock held by non-affiliates of the registrant: $11,793,432 computed on the basis </FONT>of</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.85pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">$1.64 per share,
the closing price of the registrant&rsquo;s common stock on the New York Stock Exchange on June 30, 2019. For purposes of calculating
this amount only, all directors and executive officers of the registrant have been treated as affiliates. There were 13,518,146
shares of the registrant&rsquo;s common stock, $.001 par value, outstanding as </FONT>of <FONT STYLE="letter-spacing: -0.05pt">March
</FONT>29, <FONT STYLE="letter-spacing: -0.05pt">2020. The net asset value </FONT>of a <FONT STYLE="letter-spacing: -0.05pt">share
of the Registrant as of December 31, 2019 was $3.40.</FONT></P>

<P STYLE="font: 10pt/97% Times New Roman, Times, Serif; margin: 2.5pt 7.15pt 0 5.3pt; text-align: justify; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Indicate
by check mark whether the registrant has submitted electronically and posted </FONT>on <FONT STYLE="letter-spacing: -0.05pt">its
corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T
during the preceding 12 months (or such shorter period that the registrant was required to submit and post such files).</FONT>
<FONT STYLE="font-family: Segoe UI Symbol,sans-serif"><B>&#9744;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 1.95pt 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Portions
of the Proxy Statement (to be filed) for the 2020 Annual Shareholder&rsquo;s meeting are incorporated by reference in Parts</FONT>
II <FONT STYLE="letter-spacing: -0.05pt">and </FONT>III.</P>



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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 4.5pt 0 0; text-align: center">&nbsp;</P>

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><B><A NAME="TableOfContents" TITLE="Table of Contents"></A>&nbsp;TABLE
OF CONTENTS</B></P>


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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
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    <TD STYLE="width: 9%; padding-left: 0.1in; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 85%; padding-left: 0.1in; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><B>Page</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><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="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 1</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_002">Business</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">3</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 1A</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_003">Risk Factors</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">10</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 1B</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_004">Unresolved Staff Comments</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">23</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 2</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_005">Properties</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">23</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 3</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_006">Legal Proceedings</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">23</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 4</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_007">Mine Safety Disclosures</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">23</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: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><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="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 5</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_009">Market for Registrant&rsquo;s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">24</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 6</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_010">Selected Financial Data</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">25</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 7</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_011">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">25</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 7A</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Q<A HREF="#a_012">uantitative and Qualitative Information About Market Risk</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">35</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 8</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_013">Financial Statements and Supplementary Data</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">36</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 9</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_014">Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">62</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 9A</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_015">Controls and Procedures</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">62</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 9B</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_016">Other Information</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">62</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: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><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="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 10</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_018">Directors, Executive Officers and Corporate Governance</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">63</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 11</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_019">Executive Compensation</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">63</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 12</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_020">Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">63</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 13</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_021">Certain Relationships and Related Transactions, and Director Independence</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">63</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 14</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_022">Principal Accountant Fees and Services</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">63</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: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><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="vertical-align: top; padding-left: 12pt; text-indent: -11.15pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 15</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_024">Exhibits and Financial Statement Schedules</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">63</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Item 16</FONT></TD>
    <TD STYLE="vertical-align: bottom; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"><A HREF="#a_025">Form 10-K Summary</A></FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%"></FONT>63</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><A NAME="a_001"></A>PART </FONT>I</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><A NAME="a_002"></A><FONT STYLE="letter-spacing: -0.05pt"><B>Item 1.</B></FONT><B>
<FONT STYLE="letter-spacing: -0.1pt"><I>Business</I></FONT></B></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Equus
Total Return, Inc. (&ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Equus&rdquo; the &ldquo;Company&rdquo; or the
&ldquo;Fund&rdquo;), </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Delaware corporation, was formed by Equus Investments II, L.P.
</FONT>(the <FONT STYLE="letter-spacing: -0.05pt">&ldquo;Partnership&rdquo;) </FONT>on <FONT STYLE="letter-spacing: -0.05pt">August
16, 1991. On July 1, 1992, the Partnership </FONT>was <FONT STYLE="letter-spacing: -0.05pt">reorganized and all of the assets</FONT>
and <FONT STYLE="letter-spacing: -0.05pt">liabilities </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the Partnership were transferred
to the Fund in exchange for shares </FONT>of <FONT STYLE="letter-spacing: -0.05pt">common stock </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
Fund. On August 11, 2006, our shareholders approved the change of the Fund&rsquo;s investment strategy to</FONT> a <FONT STYLE="letter-spacing: -0.05pt">total
return investment objective. This strategy seeks</FONT> to <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>of <FONT STYLE="letter-spacing: -0.05pt">name from Equus II Incorporated </FONT>to <FONT STYLE="letter-spacing: -0.05pt">Equus
Total Return, Inc.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">total enterprise value between
$5.0 million and $75.0 million, although we may engage </FONT>in <FONT STYLE="letter-spacing: -0.05pt">transactions with smaller
</FONT>or <FONT STYLE="letter-spacing: -0.05pt">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</FONT> and <FONT STYLE="letter-spacing: -0.05pt">sale
of warrants received in connection with a financing. We seek to achieve capital appreciation by making investments </FONT>in <FONT STYLE="letter-spacing: -0.05pt">equity
and equity-oriented securities issued</FONT> by <FONT STYLE="letter-spacing: -0.05pt">privately-owned companies </FONT>or <FONT STYLE="letter-spacing: -0.05pt">smaller
public companies in transactions negotiated directly with such companies. Given market conditions over the past several years and
the performance</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our portfolio, our management and board of directors believe </FONT>it
<FONT STYLE="letter-spacing: -0.05pt">prudent </FONT>to <FONT STYLE="letter-spacing: -0.05pt">continue </FONT>to <FONT STYLE="letter-spacing: -0.05pt">review
alternatives to refine and further</FONT> clarify the <FONT STYLE="letter-spacing: -0.05pt">current strategies.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Equus
is </FONT>a <FONT STYLE="letter-spacing: -0.05pt">closed-end management investment company that has elected to be treated </FONT>as
a <FONT STYLE="letter-spacing: -0.05pt">business development company (&ldquo;BDC&rdquo;) under the Investment Company Act </FONT>of
<FONT STYLE="letter-spacing: -0.05pt">1940 (&ldquo;1940 Act&rdquo;). In order</FONT> to <FONT STYLE="letter-spacing: -0.05pt">remain
</FONT>a BDC, <FONT STYLE="letter-spacing: -0.05pt">we </FONT>must <FONT STYLE="letter-spacing: -0.05pt">meet certain specified
requirements under the 1940 Act, including investing </FONT>at <FONT STYLE="letter-spacing: -0.05pt">least 70% of our assets in
eligible portfolio companies and limiting the amount</FONT> of <FONT STYLE="letter-spacing: -0.05pt">leverage we incur. Equus is
also </FONT>a <FONT STYLE="letter-spacing: -0.05pt">regulated investment company (&ldquo;RIC&rdquo;) under Subchapter</FONT> M
of <FONT STYLE="letter-spacing: -0.05pt">the U.S. Internal Revenue Code </FONT>of 1986. <FONT STYLE="letter-spacing: -0.05pt">As
such, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">are</FONT> not <FONT STYLE="letter-spacing: -0.05pt">required </FONT>to <FONT STYLE="letter-spacing: -0.05pt">pay
corporate-level income tax on the Fund&rsquo;s investment income. So long as we remain</FONT> a <FONT STYLE="letter-spacing: -0.05pt">BDC,
we intend</FONT> to <FONT STYLE="letter-spacing: -0.05pt">maintain our RIC status, which requires that </FONT>we <FONT STYLE="letter-spacing: -0.05pt">qualify
annually as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC </FONT>by <FONT STYLE="letter-spacing: -0.05pt">meeting certain
specified requirements. For </FONT>a <FONT STYLE="letter-spacing: -0.05pt">discussion of these requirements necessary to maintain
our status as</FONT> a <FONT STYLE="letter-spacing: -0.05pt">BDC and as</FONT> a <FONT STYLE="letter-spacing: -0.05pt">RIC, please
see &ldquo;<I>Business Development Company</I></FONT><I> <FONT STYLE="letter-spacing: -0.1pt">Requirements</FONT></I><FONT STYLE="letter-spacing: -0.1pt">&rdquo;</FONT>
<FONT STYLE="letter-spacing: -0.05pt">and &ldquo;<I>Regulated Investment Company Tax Status</I>,&rdquo; respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
principal office is located at 700 Louisiana St., </FONT>48<FONT STYLE="font-size: 6.5pt">th</FONT> <FONT STYLE="letter-spacing: -0.05pt">Floor,
Houston, Texas, 77002, and the telephone number is 1-888-323-4533. Our corporate website is located at <I>www.equuscap.com</I>.
We make available free of charge </FONT>on <FONT STYLE="letter-spacing: -0.05pt">our website our annual report on Form 10-K, quarterly
reports </FONT>on <FONT STYLE="letter-spacing: -0.05pt">Form 10-Q, current reports </FONT>on <FONT STYLE="letter-spacing: -0.05pt">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 (&ldquo;NYSE&rdquo;)
under the ticker symbol &ldquo;EQS&rdquo;.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Significant
Developments</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.3pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Impact
of the Coronavirus Generally. </I>The introduction in late 2019 of SARS-CoV-2, also known as the pathogen that causes COVID-19,
coronavirus disease, or simply, the &ldquo;coronavirus&rdquo;, has had a substantial detrimental impact on markets and economic
forecasts for governments and businesses worldwide, and could have a materially adverse impact upon our operations and that of
our portfolio companies, although the extent of the impact cannot be determined at the present time. The World Health Organization
has declared the coronavirus a pandemic, underscoring the global nature of the spread of the virus and, as of the date of filing
of this Annual Report on Form 10-K, the President of the United States has declared a national emergency to enable federal and
state governments to access federal emergency funds and resources. National, state, and local governments across the United States
have already implemented significant travel, movement, and assembly restrictions, as well as restrictions on the movement of goods,
all of which are expected to have a material adverse impact upon consumer and business demand. If the coronavirus continues to
spread, or if the economic disruption caused thus far by the coronavirus continues, our operations and financial condition could
be materially adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.3pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.3pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.3pt 0 5.3pt; text-indent: 24.5pt"><I>Impact of the Coronavirus on Our
Operations</I>. The highly contagious nature of the coronavirus has caused numerous private and public organizations to substantially
alter the way in which they operate. Many such organizations have, to the extent possible, required employees to work remotely
to reduce opportunities for contagion. We have also taken steps to minimize the exposure of our employees and service providers
by requiring all such persons to work from a remote location. We utilize a cloud-based storage and retrieval system for our records
and can communicate electronically or by telephone with third parties such as our financial institutions, legal and accounting
advisors, and our portfolio companies. However, government directives on social distancing and shelter-in-place mandates have rendered
us unable to travel to attend board meetings, negotiations, and other functions which are endemic to the interpersonal nature of
private equity investing. Should these disruptions and restrictions on travel continue as a result of the coronavirus, we cannot,
therefore, assure you that our operations as a BDC or our efforts to effect a transformative transaction involving Equus will not
be materially adversely affected thereby.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.3pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.3pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.3pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.3pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.3pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Impact
of Geopolitical Events and the Coronavirus on the Oil and Gas Sector. </I>The substantial recent downturn in world markets has
been prominent in the oil and gas sector, with crude prices falling to 18-year lows in mid-March 2020. The collapse in prices was
the result of a price war between the Russian Federation and Saudi Arabia and a massive drop in forecasted demand as a consequence
of the coronavirus. Should prices not recover to sustainable levels, a number of smaller oil and gas firms that have incurred leverage
could experience severe economic challenges, including insolvency and bankruptcy. Other firms, such as Equus Energy, could see
future capital expenditures to generate additional reserves from existing mineral interests postponed indefinitely, which could
have a material adverse effect upon the operations and financial condition of Equus Energy.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.3pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.3pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><I></I></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.3pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Plan
</I></FONT><I>of <FONT STYLE="letter-spacing: -0.05pt">Reorganization and Share Exchange with MVC Capital. </FONT></I>On <FONT STYLE="letter-spacing: -0.05pt">May
14, 2014, we announced</FONT> that <FONT STYLE="letter-spacing: -0.05pt">the Fund intended </FONT>to <FONT STYLE="letter-spacing: -0.05pt">effect</FONT>
a <FONT STYLE="letter-spacing: -0.05pt">reorganization pursuant </FONT>to <FONT STYLE="letter-spacing: -0.05pt">Section 2(a)(33)
of the 1940 Act (hereinafter, the &ldquo;Plan of Reorganization&rdquo;). As </FONT>a <FONT STYLE="letter-spacing: -0.05pt">first
step to consummating the Plan</FONT> of <FONT STYLE="letter-spacing: -0.05pt">Reorganization, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">sold
to MVC Capital, Inc. (&ldquo;MVC&rdquo;) 2,112,000 newly-issued shares </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the Fund&rsquo;s
common stock </FONT>in <FONT STYLE="letter-spacing: -0.05pt">exchange for 395,839 shares of MVC (such transaction</FONT> is <FONT STYLE="letter-spacing: -0.05pt">hereinafter
referred to as the &ldquo;Share Exchange&rdquo;). MVC is </FONT>a <FONT STYLE="letter-spacing: -0.05pt">business development </FONT><FONT STYLE="letter-spacing: -0.1pt">company</FONT>
<FONT STYLE="letter-spacing: -0.05pt">traded on the NYSE that provides long-term debt and equity investment capital to fund growth,
acquisitions and recapitalizations </FONT>of <FONT STYLE="letter-spacing: -0.05pt">companies in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">variety</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">industries. The Share Exchange was calculated based on the Fund&rsquo;s and MVC&rsquo;s
respective net asset value</FONT> per <FONT STYLE="letter-spacing: -0.05pt">share.</FONT> At <FONT STYLE="letter-spacing: -0.05pt">the
time of the Share Exchange, the number </FONT>of <FONT STYLE="letter-spacing: -0.05pt">MVC shares received by Equus represented
approximately 1.73% of MVC&rsquo;s total outstanding shares of common stock.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Pursuant
to the terms </FONT>of a <FONT STYLE="letter-spacing: -0.05pt">Share Exchange Agreement, dated May 12, 2014, entered into by Equus
and MVC which memorialized the Share Exchange, we intend to finalize the Plan</FONT> of <FONT STYLE="letter-spacing: -0.05pt">Reorganization
by pursuing </FONT>a <FONT STYLE="letter-spacing: -0.05pt">merger</FONT> or <FONT STYLE="letter-spacing: -0.05pt">consolidation
(&ldquo;Consolidation&rdquo;) with an operating company focused on the energy, natural</FONT> <FONT STYLE="letter-spacing: -0.1pt">resources,</FONT>
<FONT STYLE="letter-spacing: -0.05pt">technology, or financial services sector and terminating the Fund&rsquo;s election</FONT>
to <FONT STYLE="letter-spacing: -0.05pt">be classified as</FONT> a <FONT STYLE="letter-spacing: -0.05pt">BDC under the 1940 Act.
Our management</FONT> is <FONT STYLE="letter-spacing: -0.05pt">currently evaluating these alternatives, including the possibility
of transforming Equus into a permanent capital vehicle, and expects to commence and/or consummate </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation
or other transformative transaction during 2020.</FONT></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 7.15pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Agreement
to Acquire Portfolio Company of MVC</I>&mdash;On April 24, 2017, we entered into </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Stock
Purchase Agreement and Plan of Merger (&ldquo;Merger Agreement&rdquo;) with ETR Merger</FONT> Sub, Inc., a <FONT STYLE="letter-spacing: -0.05pt">newly-formed
wholly-owned subsidiary of Equus, </FONT>certain <FONT STYLE="letter-spacing: -0.05pt">shareholders of USG&amp;E, and MVC as </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">selling shareholder of U.S. Gas </FONT>&amp; <FONT STYLE="letter-spacing: -0.05pt">Electric,
Inc. (&ldquo;USG&amp;E&rdquo;) and as representative </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the selling USG&amp;E shareholders.
On May 30, 2017, USG&amp;E and MVC notified us that they had accepted </FONT>a <FONT STYLE="letter-spacing: -0.05pt">proposal from
Crius Energy Trust, that was considered by the respective boards of directors </FONT>of <FONT STYLE="letter-spacing: -0.05pt">USG&amp;E
and MVC to constitute </FONT>a <FONT STYLE="letter-spacing: -0.05pt">&ldquo;Superior Proposal&rdquo; (as such term is defined in
the Merger Agreement) to the terms and conditions of the Merger Agreement, and, accordingly, provided us with </FONT>a <FONT STYLE="letter-spacing: -0.05pt">notice
of termination pursuant to the Merger Agreement. Further, pursuant to the Merger Agreement, USG&amp;E</FONT> paid us a <FONT STYLE="letter-spacing: -0.05pt">termination
fee of $2.5 million (see Note</FONT> 4 &ndash; <FONT STYLE="letter-spacing: -0.05pt"><I>Related Party Transactions and Agreements</I>
below).</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Intention
to Continue </I></FONT><I>to <FONT STYLE="letter-spacing: -0.05pt">Pursue Consolidation</FONT></I><FONT STYLE="letter-spacing: -0.05pt">.
Notwithstanding the termination</FONT> of the Merger <FONT STYLE="letter-spacing: -0.05pt">Agreement with USG&amp;E described above,
we intend to pursue </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation and the completion of our Plan of Reorganization
with another operating company or the transformation of Equus into a permanent capital vehicle and withdraw our BDC election as
authorized</FONT> by <FONT STYLE="letter-spacing: -0.05pt">our stockholders. While we </FONT>are <FONT STYLE="letter-spacing: -0.05pt">presently
evaluating various opportunities that could enable </FONT>us to <FONT STYLE="letter-spacing: -0.05pt">accomplish </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation,
we cannot assure you that we will be able to do so within any particular time period or at all. Moreover, we cannot assure you
that the terms of any such transaction that would embody </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation would be
acceptable to us.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Authorization
to Withdraw BDC Election</I>. On</FONT> November 14<FONT STYLE="letter-spacing: -0.05pt">, 2019, holders </FONT>of a <FONT STYLE="letter-spacing: -0.05pt">majority
of the outstanding common stock of the Fund approved our cessation as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC under
the 1940 Act and authorized our Board</FONT> to <FONT STYLE="letter-spacing: -0.05pt">cause the Fund&rsquo;s withdrawal of its
election to be classified as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC, effective as </FONT>of a <FONT STYLE="letter-spacing: -0.05pt">date
designated </FONT>by <FONT STYLE="letter-spacing: -0.05pt">the Board and</FONT> our <FONT STYLE="letter-spacing: -0.05pt">Chief
Executive Officer, but</FONT> no <FONT STYLE="letter-spacing: -0.05pt">later than March 31, 2020, although we expect that our stockholders
will grant an extension or another such authorization in the future. This authorization and others which preceded it that have
since expired were given as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">consequence </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
Plan of Reorganization described above. Notwithstanding any such authorization to withdraw our BDC election, we will not submit
any such withdrawal unless and until Equus has entered into</FONT> a <FONT STYLE="letter-spacing: -0.05pt">definitive agreement
to effect</FONT> a <FONT STYLE="letter-spacing: -0.05pt">Consolidation. Further, even if</FONT> we are <FONT STYLE="letter-spacing: -0.05pt">again
authorized</FONT> to <FONT STYLE="letter-spacing: -0.05pt">withdraw our election as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC,
we will require </FONT>a <FONT STYLE="letter-spacing: -0.05pt">subsequent affirmative vote from holders of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">majority
of our outstanding voting shares to enter into any such definitive agreement or change the nature of our business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Authorization
to Increase Leverage</I>. Also on </FONT>November 14, <FONT STYLE="letter-spacing: -0.05pt">2019, holders </FONT>of a <FONT STYLE="letter-spacing: -0.05pt">majority
of the outstanding common stock of the Fund authorized our Board to decrease the Fund&rsquo;s asset coverage ratio from 200% to
150%, the effect of which is to double the Fund&rsquo;s borrowing capacity. The authorization stems from the Small Business Credit
Availability Act which was signed into law in March 2018 and amends certain sections of the 1940 Act, such as maximum leverage
requirements, applicable to BDCs.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Outlook</I>.
Our Board and management</FONT> of the <FONT STYLE="letter-spacing: -0.05pt">Fund (&ldquo;Management&rdquo;) continue to believe
that current market conditions and recent portfolio performance dictate the need to pursue </FONT>a <FONT STYLE="letter-spacing: -0.05pt">more
active role in the management of our remaining investments and to </FONT>seek <FONT STYLE="letter-spacing: -0.05pt">liquidity events
at the appropriate time to protect and enhance shareholder value. These activities include continuous monitoring and intensive
reviews</FONT> of <FONT STYLE="letter-spacing: -0.05pt">portfolio company performance and expectations, providing follow-on capital
when necessary, and the exploration of liquidity events for certain portfolio companies to position the Fund to maximize investment
returns and, to the extent we intend to remain </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC,</FONT> actively <FONT STYLE="letter-spacing: -0.05pt">pursuing
suitable </FONT>new <FONT STYLE="letter-spacing: -0.05pt">investments for the Fund.</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.2pt 0 0"></P>

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<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.2pt 0 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Investment
Objective</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">To
the extent we remain </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC and </FONT>do <FONT STYLE="letter-spacing: -0.05pt">not
complete the Consolidation as described above, our investment objective is to maximize the total return to our stockholders </FONT>in
<FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our endeavors
in the energy sector, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">also </FONT>seek <FONT STYLE="letter-spacing: -0.05pt">to
purchase</FONT> or <FONT STYLE="letter-spacing: -0.05pt">develop working interests, mineral interests, </FONT>and <FONT STYLE="letter-spacing: -0.05pt">revenue
leasehold interests </FONT>in oil and gas <FONT STYLE="letter-spacing: -0.05pt">properties, although </FONT>we <FONT STYLE="letter-spacing: -0.05pt">remain
open </FONT>to <FONT STYLE="letter-spacing: -0.05pt">exploring investment opportunities </FONT>in a <FONT STYLE="letter-spacing: -0.05pt">variety
of other sectors. Should we continue to grow and develop Equus as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">closed-end fund
or permanent capital vehicle instead of an operating company, we intend to include investments </FONT>in <FONT STYLE="letter-spacing: -0.05pt">progressively
larger enterprises.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Investment
Strategy</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.65pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
investment strategy attempts to strike </FONT>a <FONT STYLE="letter-spacing: -0.05pt">balance between the potential for gain and
the risk of loss. With respect</FONT> to <FONT STYLE="letter-spacing: -0.05pt">capital appreciation, Equus is </FONT>a <FONT STYLE="letter-spacing: -0.05pt">&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 </FONT>cash <FONT STYLE="letter-spacing: -0.05pt">producing investments wherein we invest principally</FONT> in <FONT STYLE="letter-spacing: -0.05pt">debt</FONT>
or <FONT STYLE="letter-spacing: -0.05pt">preferred equity financing with the objective of generating regular interest and dividend
income back</FONT> to <FONT STYLE="letter-spacing: -0.05pt">the Fund. Debt and preferred equity financing may also </FONT>be <FONT STYLE="letter-spacing: -0.05pt">used
to create long-term capital appreciation through the exercise and sale of warrants received in connection with a 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Investment
Criteria</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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 </FONT>to <FONT STYLE="letter-spacing: -0.05pt">time.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Management
Competency and Ownership</I>. </FONT>We seek to invest in <FONT STYLE="letter-spacing: -0.05pt">companies with experienced management
teams who have</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.6pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">demonstrated
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">track record of successful performance. Further, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">desire
to invest in companies with significant management ownership. We believe that significant management ownership</FONT> in <FONT STYLE="letter-spacing: -0.05pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Substantial
Target Market</I>. We desire to focus on companies whose products or services have favorable growth potential and strong competitive
positions </FONT>in <FONT STYLE="letter-spacing: -0.05pt">their respective markets. These positions may be as leadership positions
within </FONT>a <FONT STYLE="letter-spacing: -0.05pt">given industry or market niche positions in which the product </FONT>or <FONT STYLE="letter-spacing: -0.05pt">service
has </FONT>a <FONT STYLE="letter-spacing: -0.05pt">demonstrated competitive advantage. The market in which </FONT>a <FONT STYLE="letter-spacing: -0.05pt">potential
portfolio company operates should either be sizeable or have significant growth </FONT><FONT STYLE="letter-spacing: -0.1pt">potential.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt/104% Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>History</I></FONT><I>
of <FONT STYLE="letter-spacing: -0.05pt">Profitability and Favorable Growth Potential</FONT></I><FONT STYLE="letter-spacing: -0.05pt">.
We target companies that have demonstrated </FONT>a <FONT STYLE="letter-spacing: -0.05pt">history of profitability</FONT> or a
<FONT STYLE="letter-spacing: -0.05pt">reasonable expectation of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">return </FONT>to
<FONT STYLE="letter-spacing: -0.05pt">profitability</FONT> in <FONT STYLE="letter-spacing: -0.05pt">the near future.</FONT></P>

<P STYLE="font: 8pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Ability
to Provide Regular Cash Interest and Distributions</I>. We look for companies with strong cash flow models sufficient</FONT> to
<FONT STYLE="letter-spacing: -0.05pt">provide regular and consistent interest and/or preferred dividend payments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Management
Assistance and Substantial Equity</I>. Given the requirements of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC under the 1940
Act, we seek </FONT>to <FONT STYLE="letter-spacing: -0.05pt">invest</FONT> in <FONT STYLE="letter-spacing: -0.05pt">companies that
will permit substantial managerial assistance including representation on the board of directors </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
company or its equivalent. With regard to equity investments, we desire </FONT>to <FONT STYLE="letter-spacing: -0.05pt">obtain
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">substantial investment position in portfolio companies. This position may be as
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">minority shareholder with certain contractual rights</FONT> and <FONT STYLE="letter-spacing: -0.05pt">powers,
</FONT>or as a <FONT STYLE="letter-spacing: -0.05pt">majority shareholder, and should otherwise allow us to have substantive input</FONT>
on <FONT STYLE="letter-spacing: -0.05pt">the direction and strategies </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the portfolio
company.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Plausible
Exit and Potential for Appreciation</I>. Prior to investing in</FONT> a <FONT STYLE="letter-spacing: -0.05pt">portfolio company,
</FONT>we <FONT STYLE="letter-spacing: -0.05pt">will seek to analyze potential exit strategies and pursue those investments with
such strategies </FONT>as <FONT STYLE="letter-spacing: -0.05pt">may </FONT>be <FONT STYLE="letter-spacing: -0.05pt">achievable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT>&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><B></B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Investment</FONT>
<FONT STYLE="letter-spacing: -0.1pt">Operations</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Our investment
operations consist principally of the following basic</FONT> <FONT STYLE="letter-spacing: -0.1pt">activities:</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Investment
Selection. </I>Historically, many of our investment opportunities have come </FONT>from <FONT STYLE="letter-spacing: -0.05pt">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.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Due
Diligence.</I> Once </FONT>a <FONT STYLE="letter-spacing: -0.05pt">potential investment is identified, we undertake </FONT>a <FONT STYLE="letter-spacing: -0.05pt">due
diligence review using information provided by the prospective portfolio company and publicly available information. Management
may also seek input from consultants, investment </FONT>bankers and <FONT STYLE="letter-spacing: -0.05pt">other knowledgeable sources.
The due diligence review will typically include, but</FONT> is <FONT STYLE="letter-spacing: -0.05pt">not limited to:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 46.1pt"></TD><TD STYLE="width: 10.2pt">&bull;</TD><TD><FONT STYLE="letter-spacing: -0.05pt">Review of historical and prospective financial information including audits and budgets;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 1.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 46.1pt"></TD><TD STYLE="width: 10.2pt">&bull;</TD><TD><FONT STYLE="letter-spacing: -0.05pt">On-site visits;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 1.45pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 46.1pt"></TD><TD STYLE="width: 10.2pt">&bull;</TD><TD><FONT STYLE="letter-spacing: -0.05pt">Interviews with management, employees, customers and vendors </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
potential portfolio company;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0.65pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 46.1pt"></TD><TD STYLE="width: 10.2pt">&bull;</TD><TD><FONT STYLE="letter-spacing: -0.05pt">Review of existing loan documents and credit arrangements, if any;</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0.55pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 46.1pt"></TD><TD STYLE="width: 10.2pt">&bull;</TD><TD><FONT STYLE="letter-spacing: -0.05pt">Background checks on members of management; and</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0.55pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 46.1pt"></TD><TD STYLE="width: 10.2pt">&bull;</TD><TD><FONT STYLE="letter-spacing: -0.05pt">Research relating </FONT>to <FONT STYLE="letter-spacing: -0.05pt">the company, its management,
industry, markets, products and services and competitors.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Structuring
Investments. </I>We typically negotiate investments in private transactions directly with the owner </FONT>or <FONT STYLE="letter-spacing: -0.05pt">issuer
of the securities acquired. Management structures the terms of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">proposed investment,
including the purchase price, the type of security</FONT> to <FONT STYLE="letter-spacing: -0.05pt">be purchased and our future
involvement in the portfolio company&rsquo;s business. We seek to structure the terms of the investment</FONT> to <FONT STYLE="letter-spacing: -0.05pt">provide
for</FONT> the <FONT STYLE="letter-spacing: -0.05pt">capital needs</FONT> of <FONT STYLE="letter-spacing: -0.05pt">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.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><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 </FONT>of <FONT STYLE="letter-spacing: -0.05pt">portfolio companies.
In several cases, officers and directors of the Fund serve as members </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the governing
boards of portfolio companies. Such management assistance </FONT>is <FONT STYLE="letter-spacing: -0.05pt">required of</FONT> a
<FONT STYLE="letter-spacing: -0.05pt">BDC under the 1940 Act. </FONT>We seek <FONT STYLE="letter-spacing: -0.05pt">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
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">portfolio companies, officers and directors </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
Fund may receive and retain directors&rsquo; fees or reimbursement for expenses incurred, and may participate in incentive stock
option plans </FONT>for <FONT STYLE="letter-spacing: -0.05pt">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.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Follow-On Investments</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Following
our initial investment, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio company may request that we make follow-on investments
by providing additional equity</FONT> or <FONT STYLE="letter-spacing: -0.05pt">loans needed to fully implement its business plans
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">develop </FONT>a <FONT STYLE="letter-spacing: -0.05pt">new line </FONT>of <FONT STYLE="letter-spacing: -0.05pt">business
</FONT>or <FONT STYLE="letter-spacing: -0.05pt">to recover from unexpected business problems</FONT> or <FONT STYLE="letter-spacing: -0.05pt">other
purposes. </FONT>In <FONT STYLE="letter-spacing: -0.05pt">addition, follow-on investments may be made to exercise warrants or other
preferential rights</FONT> granted to <FONT STYLE="letter-spacing: -0.05pt">the Fund or otherwise to increase our position in </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">portfolio company. We may make follow-on investments in portfolio companies from cash on
hand or borrow all or </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portion of the funds required. If </FONT>we <FONT STYLE="letter-spacing: -0.05pt">are
unable</FONT> to <FONT STYLE="letter-spacing: -0.05pt">make follow-on investments due to lack of available capital, the portfolio
company in need of the investment may be negatively impacted, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">may be required to
subordinate our debt interest in the portfolio company</FONT> to a new <FONT STYLE="letter-spacing: -0.05pt">lender, and our equity
interest </FONT>in <FONT STYLE="letter-spacing: -0.05pt">the portfolio company may be diluted if outside equity capital </FONT>is
<FONT STYLE="letter-spacing: -0.05pt">required.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Disposition
of Investments</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
method and timing </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the disposition </FONT>of <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">variety of transactions, including recapitalizations,
refinancings, management buy-outs, repayments from cash flow, acquisitions </FONT>of <FONT STYLE="letter-spacing: -0.05pt">portfolio
companies </FONT>by a <FONT STYLE="letter-spacing: -0.05pt">third party and outright sales </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
Fund&rsquo;s securities in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio company. In addition, under certain circumstances
we may distribute our portfolio securities in-kind</FONT> to <FONT STYLE="letter-spacing: -0.05pt">our stockholders. </FONT>In
<FONT STYLE="letter-spacing: -0.05pt">structuring our investments, we endeavor</FONT> to <FONT STYLE="letter-spacing: -0.05pt">reach
an understanding with the management of the prospective portfolio company as to the appropriate method and timing of the disposition
of the investment. </FONT>In <FONT STYLE="letter-spacing: -0.05pt">some cases, we seek registration rights for </FONT>our <FONT STYLE="letter-spacing: -0.05pt">portfolio
securities at the time</FONT> of <FONT STYLE="letter-spacing: -0.05pt">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 our portfolio investments.</FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Current Portfolio
Companies</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">For
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">description of our current portfolio company investments, see &ldquo;<I>Management&rsquo;s
Discussion and Analysis of Financial Condition and Results </I></FONT><I>of <FONT STYLE="letter-spacing: -0.05pt">Operations&ndash;Portfolio
Securities</FONT></I><FONT STYLE="letter-spacing: -0.05pt">.&rdquo;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Valuation</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.85pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">On
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">quarterly basis, Management values our portfolio investments. These valuations are
subject to the approval and adoption </FONT>of <FONT STYLE="letter-spacing: -0.05pt">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 (&ldquo;GAAP&rdquo;).</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
fair value of investments for which no market exists (which includes most of our investments) is determined through procedures
established in good faith by the Board. As </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">range of values that are reasonable for such investments at any particular time.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 25.1pt 0 5.3pt; text-indent: 24pt"><FONT STYLE="letter-spacing: -0.05pt">We
base our adjustments to fair value 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 </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the company&rsquo;s
current and future financial prospects</FONT> <FONT STYLE="letter-spacing: -0.1pt">and</FONT> <FONT STYLE="letter-spacing: -0.05pt">various
other factors and assumptions. </FONT>In <FONT STYLE="letter-spacing: -0.05pt">the case of unsuccessful or substantially declining
operations, we may base </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio company&rsquo;s fair value upon the company&rsquo;s
estimated liquidation value. Fair valuations are inherently subjective, and our estimate </FONT>of <FONT STYLE="letter-spacing: -0.05pt">fair
value may differ materially from amounts actually received upon the disposition of its portfolio securities. Also, any failure
by </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio company to achieve its business plan or obtain and maintain its financing
arrangements could result in increased volatility and result in</FONT> a <FONT STYLE="letter-spacing: -0.05pt">significant and
rapid change in its value.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 37.6pt 0 5.3pt; text-align: justify; text-indent: 24pt"><FONT STYLE="letter-spacing: -0.05pt">Our
general intent is </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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, we may perform </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">yield analysis to determine </FONT>if a debt <FONT STYLE="letter-spacing: -0.05pt">security
has been impaired.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 30.05pt 0 5.3pt; text-indent: 23.95pt"><FONT STYLE="letter-spacing: -0.05pt">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</FONT> in <FONT STYLE="letter-spacing: -0.05pt">order to make their </FONT>own
<FONT STYLE="letter-spacing: -0.05pt">independent assessment. Any third- party valuation data would be considered as one of many
factors in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">fair value determination. Management would then present</FONT> its <FONT STYLE="letter-spacing: -0.05pt">fair
value recommendations to the Audit Committee of the Board</FONT> of <FONT STYLE="letter-spacing: -0.05pt">Directors for review.
Following review and any adjustments required thereby, the Audit Committee would, </FONT>in <FONT STYLE="letter-spacing: -0.05pt">turn,
recommend the fair values for all of the Fund&rsquo;s portfolio investments </FONT>to <FONT STYLE="letter-spacing: -0.05pt">the
Board of Directors for final approval.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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</FONT> a <FONT STYLE="letter-spacing: -0.05pt">class
of public securities but are restricted from free </FONT><FONT STYLE="letter-spacing: -0.1pt">trading</FONT> <FONT STYLE="letter-spacing: -0.05pt">(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 restrictions. We generally hold investments in debt securities </FONT>to <FONT STYLE="letter-spacing: -0.05pt">maturity.
Accordingly, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">determine the fair value of debt securities </FONT>on <FONT STYLE="letter-spacing: -0.05pt">the
basis of the terms of the debt securities </FONT>and <FONT STYLE="letter-spacing: -0.05pt">the financial condition of the issuer.
We value certificates of deposit at their face value, plus interest accrued to the date </FONT>of <FONT STYLE="letter-spacing: -0.05pt">valuation.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 30.05pt 0 5.3pt; text-indent: 24pt"><FONT STYLE="letter-spacing: -0.05pt">Our
Board reviews the valuation policies </FONT>on a <FONT STYLE="letter-spacing: -0.05pt">quarterly basis to determine their appropriateness
and reserves the right</FONT> to <FONT STYLE="letter-spacing: -0.05pt">hire and, from time to time, utilizes independent valuation
firms </FONT>to <FONT STYLE="letter-spacing: -0.05pt">review Management&rsquo;s valuation methodology or to conduct an independent
valuation.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">On
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">daily basis, we adjust net asset value for changes in the value </FONT>of <FONT STYLE="letter-spacing: -0.05pt">publicly
held securities, if any, and for material changes in the value of investments </FONT>in <FONT STYLE="letter-spacing: -0.05pt">securities
issued by private companies. We report these amounts to Lipper Analytical Services, Inc. Our weekly and daily net asset values
appear</FONT> in <FONT STYLE="letter-spacing: -0.05pt">various publications, including <I>Barron&rsquo;s</I></FONT> and <FONT STYLE="letter-spacing: -0.05pt"><I>The
Wall Street Journal</I>.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Competition</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
compete with </FONT>a <FONT STYLE="letter-spacing: -0.05pt">large number of public and private equity and mezzanine funds and other
</FONT><FONT STYLE="letter-spacing: -0.1pt">financing</FONT> <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">lower
cost of funds and many have access to funding sources that are not available to us. In addition, certain</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our
competitors may have higher risk tolerances </FONT>or <FONT STYLE="letter-spacing: -0.05pt">different risk assessments, which could
allow them to consider </FONT>a <FONT STYLE="letter-spacing: -0.05pt">wider variety of investments and establish more relationships
and build their market shares. </FONT>In <FONT STYLE="letter-spacing: -0.05pt">addition, many </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
competitors are not subject to the regulatory restrictions that the 1940 Act imposes </FONT>on <FONT STYLE="letter-spacing: -0.05pt">us</FONT>
as a <FONT STYLE="letter-spacing: -0.05pt">BDC.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

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<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.8pt 0 5.3pt; text-align: justify; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
cannot assure you that the competitive pressures we face will not have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material
adverse effect</FONT> on <FONT STYLE="letter-spacing: -0.05pt">our business, financial condition and results of operations. In
addition, because of this competition, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">may not be able to take advantage of attractive
investment opportunities and may not be able </FONT>to <FONT STYLE="letter-spacing: -0.05pt">identify and make investments that
satisfy our investment objectives or meet our investment goals.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Properties</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
principal executive offices are located at 700 Louisiana St., 48<FONT STYLE="font-size: 6.5pt">th</FONT> Floor, Houston, Texas
77002.</FONT> Should Equus remain a BDC and not transform into an operating company or a permanent capital vehicle, w<FONT STYLE="letter-spacing: -0.05pt">e
believe that our office facilities are suitable and adequate for our operations as currently conducted and contemplated.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Business
Development Company Requirements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Qualifying
Assets</I>. As</FONT> a <FONT STYLE="letter-spacing: -0.05pt">BDC, we may</FONT> not <FONT STYLE="letter-spacing: -0.05pt">acquire
any asset other than qualifying assets, as defined by the 1940 Act, </FONT>unless, at the <FONT STYLE="letter-spacing: -0.05pt">time
the acquisition is made, the value of our qualifying assets represent at least 70% of the value</FONT> of our total <FONT STYLE="letter-spacing: -0.05pt">assets.
The principal categories of qualifying assets relevant to </FONT>our <FONT STYLE="letter-spacing: -0.05pt">business are the following:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45.75pt"></TD><TD STYLE="width: 10.55pt"><FONT STYLE="font-size: 11pt; line-height: 98%">&bull;</FONT></TD><TD STYLE="padding-right: 8.45pt"><FONT STYLE="letter-spacing: -0.05pt">Securities purchased in transactions not involving any
public offering from an issuer that is </FONT>an <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">small business investment company wholly-owned
by </FONT>the <FONT STYLE="letter-spacing: -0.05pt">BDC, and (c) either </FONT>(i) <FONT STYLE="letter-spacing: -0.05pt">(A) does
not have any class </FONT>of <FONT STYLE="letter-spacing: -0.05pt">securities with respect to which </FONT>a <FONT STYLE="letter-spacing: -0.05pt">broker
or dealer may extend margin credit, (B) </FONT>is <FONT STYLE="letter-spacing: -0.05pt">controlled </FONT>by <FONT STYLE="letter-spacing: -0.05pt">the
BDC either singly or as part</FONT> of a <FONT STYLE="letter-spacing: -0.05pt">group and an affiliated person of the BDC is </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">member of the issuer&rsquo;s board of directors, or </FONT>(C) <FONT STYLE="letter-spacing: -0.05pt">has
total assets of not more than $4 million and capital and surplus of at least </FONT>$2 <FONT STYLE="letter-spacing: -0.05pt">million,
or (ii) does not have any class </FONT>of <FONT STYLE="letter-spacing: -0.05pt">securities listed on </FONT>a <FONT STYLE="letter-spacing: -0.05pt">national
securities exchange, unless the total market capitalization of such issuer does not exceed $250 million. Qualifying assets may
also include follow-on investments </FONT>in a <FONT STYLE="letter-spacing: -0.05pt">company that was </FONT>a <FONT STYLE="letter-spacing: -0.05pt">particular
type of eligible portfolio company at the time </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the BDC&rsquo;s initial investment,
but subsequently did not meet the definition;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45.75pt"></TD><TD STYLE="width: 10.55pt"><FONT STYLE="font-size: 11pt">&bull;</FONT></TD><TD STYLE="padding-right: 37.7pt"><FONT STYLE="letter-spacing: -0.05pt">Securities received in exchange for or distributed with
respect to securities described above, or pursuant </FONT>to <FONT STYLE="letter-spacing: -0.05pt">the exercise </FONT>of <FONT STYLE="letter-spacing: -0.05pt">options,
warrants or rights relating to such securities; and</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.5pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 45.75pt"></TD><TD STYLE="width: 10.55pt"><FONT STYLE="font-size: 11pt">&bull;</FONT></TD><TD><FONT STYLE="letter-spacing: -0.05pt">Cash, cash items, government securities, or high quality debt securities maturing in
one </FONT>year or less <FONT STYLE="letter-spacing: -0.05pt">from</FONT> the <FONT STYLE="letter-spacing: -0.05pt">time</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">investment.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
may not change the nature of our business so </FONT>as <FONT STYLE="letter-spacing: -0.05pt">to cease to be, or withdraw our election
as, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC unless authorized by vote of the holders of the majority of our outstanding
voting securities, </FONT>as <FONT STYLE="letter-spacing: -0.05pt">defined in the 1940 Act. On November 19, 2019, we received this
authorization from our shareholders to withdraw our BDC election prior to March 31, 2020. This authorization and others which preceded
it were provided as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">consequence of our Plan of Reorganization announced on May 14,
2014, wherein we stated</FONT> that <FONT STYLE="letter-spacing: -0.05pt">we intended to: (i) consummate</FONT> a <FONT STYLE="letter-spacing: -0.05pt">Consolidation,
(ii) terminate the Fund&rsquo;s election to be classified as</FONT> a <FONT STYLE="letter-spacing: -0.05pt">BDC under the 1940
Act, and (iii) </FONT>be <FONT STYLE="letter-spacing: -0.05pt">restructured</FONT> as a <FONT STYLE="letter-spacing: -0.05pt">publicly-traded
operating company focused on the energy, natural</FONT> <FONT STYLE="letter-spacing: -0.1pt">resources,</FONT> <FONT STYLE="letter-spacing: -0.05pt">technology,
or financial services sector. Notwithstanding the present authorization </FONT>to <FONT STYLE="letter-spacing: -0.05pt">withdraw
our BDC</FONT> election, <FONT STYLE="letter-spacing: -0.05pt">we will require </FONT>a <FONT STYLE="letter-spacing: -0.05pt">separate
affirmative vote </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the holders </FONT>of a <FONT STYLE="letter-spacing: -0.05pt">majority
of our outstanding voting</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.3pt; text-indent: -0.05pt"><FONT STYLE="letter-spacing: -0.05pt">securities
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">consummate </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation and change
the nature of our business (see &ldquo;<I>Significant Developments&minus;Plan </I></FONT><I>of <FONT STYLE="letter-spacing: -0.05pt">Reorganization&rdquo;
</FONT></I><FONT STYLE="letter-spacing: -0.05pt">and &ldquo;<I>&minus;Authorization to Withdraw BDC Election&rdquo;</I> above).</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">To
include certain securities above as qualifying assets for the purpose of the 70% test, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC
must make available to the issuer of those securities significant managerial assistance, such as providing significant guidance
and counsel concerning the management, operations,</FONT> or <FONT STYLE="letter-spacing: -0.05pt">business objectives and policies
of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio company. We offer to provide significant managerial assistance to each
of our portfolio companies.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Temporary
Investments.</I> Pending investment in portfolio companies, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">invest our available
funds </FONT>in <FONT STYLE="letter-spacing: -0.05pt">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</FONT> by <FONT STYLE="letter-spacing: -0.05pt">the U.S. Treasury</FONT>
or <FONT STYLE="letter-spacing: -0.05pt">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. </FONT>or <FONT STYLE="letter-spacing: -0.05pt">Standard
&amp; Poor&rsquo;s Corporation, or if not rated, issued by </FONT>a <FONT STYLE="letter-spacing: -0.05pt">company having an outstanding
debt issue so rated, with maturities of less than one year at the time </FONT>of <FONT STYLE="letter-spacing: -0.05pt">investment)
will qualify for determining whether we have 70% of our total assets invested in qualifying assets </FONT>or <FONT STYLE="letter-spacing: -0.05pt">in
qualified Temporary Investments for purposes of the BDC provisions of the 1940 Act.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Leverage.</I>
We are permitted by the 1940 Act, under specified conditions, </FONT>to <FONT STYLE="letter-spacing: -0.05pt">issue multiple classes
of senior debt and </FONT>a <FONT STYLE="letter-spacing: -0.05pt">single class of preferred stock senior</FONT> to <FONT STYLE="letter-spacing: -0.05pt">the
common stock if our asset coverage, as defined in the 1940 Act, is at least 150% 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 </FONT>or <FONT STYLE="letter-spacing: -0.05pt">the
repurchase of any shares unless the asset coverage ratio is at least 150%</FONT> at the <FONT STYLE="letter-spacing: -0.05pt">time</FONT>
of the <FONT STYLE="letter-spacing: -0.05pt">distribution or repurchase.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

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<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Fund
Share Sales Below Net Asset Value</I>. To the extent we remain </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC, we generally
may sell our common stock at </FONT>a <FONT STYLE="letter-spacing: -0.05pt">price that is below the prevailing net asset value
per share only upon the approval of the policy by stockholders holding </FONT>a <FONT STYLE="letter-spacing: -0.05pt">majority</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">our issued shares, including </FONT>a <FONT STYLE="letter-spacing: -0.05pt">majority of
shares held by nonaffiliated stockholders. We may, in accordance with certain conditions established </FONT>by <FONT STYLE="letter-spacing: -0.05pt">the
SEC, sell shares below net asset value in connection with the distribution of rights </FONT>to <FONT STYLE="letter-spacing: -0.05pt">all
of our stockholders. We may also issue shares at less than net asset value in payment </FONT>of <FONT STYLE="letter-spacing: -0.05pt">dividends
to existing stockholders.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>No
Redemption Rights. </I>Since we are </FONT>a <FONT STYLE="letter-spacing: -0.05pt">closed-end BDC, our stockholders have </FONT>no
<FONT STYLE="letter-spacing: -0.05pt">right to present their shares to the Fund for redemption. Recognizing the possibility that
our shares might trade at </FONT>a <FONT STYLE="letter-spacing: -0.05pt">discount, our Board has determined that it would </FONT>be
in <FONT STYLE="letter-spacing: -0.05pt">the best interest of our stockholders for the Fund to </FONT>be <FONT STYLE="letter-spacing: -0.05pt">authorized</FONT>
to <FONT STYLE="letter-spacing: -0.05pt">attempt to reduce </FONT>or <FONT STYLE="letter-spacing: -0.05pt">eliminate </FONT>a <FONT STYLE="letter-spacing: -0.05pt">market
value discount from net asset value. Accordingly, from time </FONT>to <FONT STYLE="letter-spacing: -0.05pt">time we may, but are
not required to, repurchase our shares (including by means</FONT> of <FONT STYLE="letter-spacing: -0.05pt">tender offers) to attempt
to reduce </FONT>or <FONT STYLE="letter-spacing: -0.05pt">eliminate any discount</FONT> or <FONT STYLE="letter-spacing: -0.05pt">to
increase the net asset value of our shares.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">majority of the independent directors and </FONT>a <FONT STYLE="letter-spacing: -0.05pt">majority
of the independent directors having no financial interest in the</FONT> <FONT STYLE="letter-spacing: -0.1pt">transactions.</FONT>
<FONT STYLE="letter-spacing: -0.05pt">However, certain transactions involving closely affiliated persons of the Fund require the
prior approval of the SEC.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Regulated Investment
Company Tax Status</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC, we operate </FONT>to <FONT STYLE="letter-spacing: -0.05pt">qualify</FONT> as
a <FONT STYLE="letter-spacing: -0.05pt">RIC under Subchapter</FONT> M of <FONT STYLE="letter-spacing: -0.05pt">the Internal Revenue
Code </FONT>of <FONT STYLE="letter-spacing: -0.05pt">1986, as amended (the &quot;Code&quot;). If we qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC
and annually distribute to our stockholders in</FONT> a <FONT STYLE="letter-spacing: -0.05pt">timely manner at least 90% of</FONT>
our <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>by <FONT STYLE="letter-spacing: -0.05pt">accounting principles generally accepted in the United States due to
temporary and permanent timing differences in the recognition of income and expenses, returns </FONT>of <FONT STYLE="letter-spacing: -0.05pt">capital
and net unrealized appreciation or depreciation.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Generally,
in order to maintain our </FONT>status as a <FONT STYLE="letter-spacing: -0.05pt">RIC, </FONT>we must <FONT STYLE="letter-spacing: -0.05pt">(i)
continue to qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC; (ii) distribute to our stockholders in</FONT> a <FONT STYLE="letter-spacing: -0.05pt">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%</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our gross investment company income from dividends, interest, payments with
respect</FONT> to <FONT STYLE="letter-spacing: -0.05pt">securities loans,</FONT> gains <FONT STYLE="letter-spacing: -0.05pt">from
</FONT>the <FONT STYLE="letter-spacing: -0.05pt">sale of stock or other securities or other income derived with respect to our
business of investing </FONT>in <FONT STYLE="letter-spacing: -0.05pt">such stock </FONT>or <FONT STYLE="letter-spacing: -0.05pt">securities
as defined by </FONT>the <FONT STYLE="letter-spacing: -0.05pt">Code; and (iv) meet investment diversification requirements. The
diversification requirements generally require us at the end of each quarter </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
taxable</FONT> year <FONT STYLE="letter-spacing: -0.05pt">to have (a) at least 50% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
value of our assets consist of cash, cash items, government securities, securities of other RICs and other securities if such other
securities of any one issuer do not represent more than 5% of our assets and 10% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
outstanding voting securities of the issuer and (b) no more than 25% of the value </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
assets invested in the securities of one issuer (other than U.S. government securities and securities of other RICs), or</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">two or more issuers that </FONT>are <FONT STYLE="letter-spacing: -0.05pt">controlled by
us and are engaged in the same or similar or related trades or businesses.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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) </FONT>in a <FONT STYLE="letter-spacing: -0.05pt">timely manner 98% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>4%
<FONT STYLE="letter-spacing: -0.05pt">nondeductible Federal excise tax imposed with respect to certain undistributed income of
RICs.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">If</FONT>
we <FONT STYLE="letter-spacing: -0.05pt">fail to satisfy the 90% distribution requirement or otherwise fail to qualify as </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">RIC </FONT>in <FONT STYLE="letter-spacing: -0.05pt">any taxable year, we will be subject
to tax</FONT> in <FONT STYLE="letter-spacing: -0.05pt">such year</FONT> on <FONT STYLE="letter-spacing: -0.05pt">all of our taxable
income, regardless of whether </FONT>we <FONT STYLE="letter-spacing: -0.05pt">make any distribution to our stockholders. In addition,
in that case, all of our distributions </FONT>to <FONT STYLE="letter-spacing: -0.05pt">our stockholders will be characterized as
ordinary income (to the extent </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our current and accumulated earnings and profits).
</FONT>We <FONT STYLE="letter-spacing: -0.05pt">have distributed </FONT>and <FONT STYLE="letter-spacing: -0.05pt">currently intend
to distribute sufficient dividends </FONT>to <FONT STYLE="letter-spacing: -0.05pt">eliminate our investment company taxable income;
however, none have been necessary in recent years.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Custodian</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.05pt 0 5.3pt; text-align: justify; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
act as the custodian of our securities to the extent permitted under the 1940 Act and are subject to the restrictions imposed on</FONT>
<FONT STYLE="letter-spacing: -0.1pt">self-</FONT> <FONT STYLE="letter-spacing: -0.05pt">custodians by the 1940 Act and </FONT>the
<FONT STYLE="letter-spacing: -0.05pt">rules and regulations thereunder. We have also entered into an agreement with Amegy</FONT>
Bank <FONT STYLE="letter-spacing: -0.05pt">with respect</FONT> to <FONT STYLE="letter-spacing: -0.05pt">the safekeeping of our
securities. The principal business office </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Amegy Bank is 1717 West Loop South, Houston,
Texas 77027.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Transfer and
Disbursing Agent</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
employ American Stock Transfer </FONT>&amp; <FONT STYLE="letter-spacing: -0.05pt">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, </FONT>NY <FONT STYLE="letter-spacing: -0.05pt">11219.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 143.65pt; text-align: center"></P>


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

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Certifications</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">In
June 2019, pursuant to Section 303A.12(a) </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the NYSE Listed Company Manual, we submitted
to the NYSE 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 </FONT>to <FONT STYLE="letter-spacing: -0.05pt">this annual report on Form
10-K as required by the Securities Exchange Act </FONT>of <FONT STYLE="letter-spacing: -0.05pt">1934, as amended, and the Sarbanes-Oxley
Act of 2002.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Forward-Looking
Statements</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><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 </I></FONT><I>of <FONT STYLE="letter-spacing: -0.05pt">the federal
securities laws, involve</FONT> a <FONT STYLE="letter-spacing: -0.05pt">number of risks and uncertainties, and are based on the
beliefs and assumptions of Management, based </FONT>on <FONT STYLE="letter-spacing: -0.05pt">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; </FONT><FONT STYLE="letter-spacing: -0.1pt">&ldquo;should,&rdquo;</FONT> <FONT STYLE="letter-spacing: -0.05pt">&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</FONT> of <FONT STYLE="letter-spacing: -0.05pt">such
terms or other variations </FONT>of <FONT STYLE="letter-spacing: -0.05pt">them </FONT>or by <FONT STYLE="letter-spacing: -0.05pt">comparable
terminology. In particular, statements, express or implied, concerning future actions, conditions, or events, future operating
results, or the ability to generate sales,</FONT> income, <FONT STYLE="letter-spacing: -0.05pt">or cash flow are forward-looking
statements.</FONT></I></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Among
the factors that could cause actual results to differ materially are the following: (i) changes in the economic conditions in which</FONT>
we <FONT STYLE="letter-spacing: -0.05pt">operate, which might negatively impacting our financial resources; (ii) the substantially
greater resources of certain of our competitors</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.75pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">than the Fund,
potentially reducing the number of suitable investment opportunities offered </FONT>or <FONT STYLE="letter-spacing: -0.05pt">reducing
the yield necessary to consummate the investment; (iii) the uncertainty regarding the value </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
privately held securities that require </FONT>a <FONT STYLE="letter-spacing: -0.05pt">good faith estimate of fair value for which
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">change in estimate could affect the Fund&rsquo;s net asset value; (iv) the illiquidity
of our investments in securities </FONT>of <FONT STYLE="letter-spacing: -0.05pt">privately held companies which could affect our
ability to realize </FONT>a <FONT STYLE="letter-spacing: -0.05pt">gain; (v) the default of one or more of our portfolio companies
</FONT>on <FONT STYLE="letter-spacing: -0.05pt">their loans </FONT>or <FONT STYLE="letter-spacing: -0.05pt">the failure of such
companies to provide any returns on our investments which could affect the Fund&rsquo;s operating results; (vi) our dependence
</FONT>on <FONT STYLE="letter-spacing: -0.05pt">external financing to grow our business; (vii) our ability to retain key management
personnel; (viii) an economic downturn or recession that could impair our portfolio companies and therefore harm our operating
results; (iv) our borrowing arrangements, which could impose certain restrictions; (x) changes </FONT>in <FONT STYLE="letter-spacing: -0.05pt">interest
rates that may affect our cost of capital and net operating income; (xi) our inability</FONT> to <FONT STYLE="letter-spacing: -0.05pt">incur
additional indebtedness unless the Fund maintains an asset coverage of at least 150%, which may affect returns to our stockholders;
(xii) the possible failure of the Fund to continue to qualify for our pass-through treatment as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC
which could have an effect on stockholder returns; (xiii) the volatility of the price </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
common stock; (xiv) general business and economic conditions and other risk factors described </FONT>in <FONT STYLE="letter-spacing: -0.05pt">its
reports filed from time to time with the SEC; and (xv) risks related to our Plan of Reorganization. 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.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><A NAME="a_003"></A><FONT STYLE="letter-spacing: -0.05pt"><B>Item 1A. <I>Risk
Factors</I></B></FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the
other information included in the annual report </FONT>on <FONT STYLE="letter-spacing: -0.05pt">Form 10-K, including our financial
statements and the related notes thereto.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Additional
risks and uncertainties not presently known to us, </FONT>or <FONT STYLE="letter-spacing: -0.05pt">not presently deemed material
by us, may also impair our operations and performance.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">If
any of the following risks actually occur, our business, financial condition or results of operations could</FONT> be <FONT STYLE="letter-spacing: -0.05pt">materially
adversely affected. </FONT>If <FONT STYLE="letter-spacing: -0.05pt">that happens, the trading price of our common stock could decline
and you may lose all or part of your investment.</FONT></P>

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

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

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

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


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Risks Related
to</FONT> the Coronavirus</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
coronavirus could have an adverse impact on our operations.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt">The
introduction in late 2019 of SARS-CoV-2, also known as the pathogen that causes COVID-19, coronavirus disease, or simply, the &ldquo;coronavirus&rdquo;,
has had a substantial detrimental impact on markets and economic forecasts for governments and businesses worldwide, and could
have a materially adverse impact upon our operations and that of our portfolio companies, although the extent of the impact cannot
be determined at the present time. The World Health Organization has declared the coronavirus a pandemic, underscoring the global
nature of the spread of the virus and, as of the date of filing of this Annual Report on Form 10-K, the President of the United
States has declared a national emergency to enable federal and state governments to access federal emergency funds and resources.
National, state, and local governments across the United States have already implemented significant travel, movement, and assembly
restrictions, as well as restrictions on the movement of goods, all of which are expected to have a material adverse impact upon
consumer and business demand. If the coronavirus continues to spread, or if the economic disruption caused thus far by the coronavirus
continues, our operations and financial condition, including our access to liquidity, could be materially adversely affected.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><B><I>The coronavirus could have
an adverse impact on our ability to conduct business.</I></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt">The highly contagious nature of the
coronavirus has caused numerous private and public organizations to substantially alter the way in which they operate. Many such
organizations have, to the extent possible, required employees to work remotely to reduce opportunities for contagion. We have
also taken steps to minimize the exposure of our employees and service providers by requiring all such persons to work from a remote
location. We utilize a cloud-based storage and retrieval system for our records and can communicate electronically or by telephone
with third parties such as our financial institutions, legal and accounting advisors, and our portfolio companies. However, government
directives on social distancing and shelter-in-place mandates have rendered us unable to travel to attend board meetings, negotiations,
and other functions which are endemic to the interpersonal nature of private equity investing. Should these disruptions and restrictions
on travel continue as a result of the coronavirus, we cannot, therefore, assure you that our operations as a BDC or our efforts
to effect a transformative transaction involving Equus will not be materially adversely affected thereby.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
coronavirus could have an adverse impact on our oil and gas holdings.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt">The
substantial recent downturn in world markets has been prominent in the oil and gas sector, with crude prices falling to 18-year
lows in mid-March 2020. The collapse in prices was the result of a price war between the Russian Federation and Saudi Arabia and
a massive drop in forecasted demand as a consequence of the coronavirus. Should prices not recover to sustainable levels, a number
of smaller oil and gas firms that have incurred leverage could experience severe economic challenges, including insolvency and
bankruptcy. Other firms, such as Equus Energy, could see future capital expenditures to generate additional reserves from existing
mineral interests postponed indefinitely, which could have a material adverse effect upon the operations and financial condition
of Equus Energy</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><B><I>The coronavirus could adversely
affect our portfolio companies.</I></B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt">Our portfolio companies may be affected
by various force majeure events (e.g., without limitation, acts of God, fire, flood, earthquakes, outbreaks of infectious disease,
pandemic or any other serious public health concern, war, trade war, cyber security breaches, terrorism and labor strikes), including
the recent global outbreak of the coronavirus. These events may have a material adverse impact on our portfolio companies&rsquo;
supply chains, limit access to key commodities or technologies, otherwise impact their customers, manufacturers or suppliers or
otherwise cause material disruptions to their industry or the industries they serve. In the case of the coronavirus, such a force
majeure event could have a broader negative impact on the world economy and international business activity generally. A substantial
negative impact to one or more of our portfolio companies as a result of the coronavirus could have a material adverse effects
on our business, financial condition and results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><B><I>Future disruptions or instability
in capital markets could negatively impact the valuation of our investments and our ability to raise capital.</I></B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt">From time to time, the global capital
markets may experience periods of disruption and instability, which could be prolonged and which could materially and adversely
impact the broader financial and credit markets, have a negative impact on the valuations of our investments and reduce the availability
to us of debt and equity capital. The recent global outbreak of the coronavirus has disrupted economic markets and the prolonged
economic impact is uncertain. Some economists and major investment banks have expressed concern that the continued spread of the
virus globally could lead to a world-wide economic downturn. Many manufacturers of goods in China and other countries in Asia have
seen a downturn in production due to the suspension of business and temporary closure of factories in an attempt to curb the spread
of the illness. As the impact of the coronavirus spreads to other parts of the world, similar impacts may occur with respect to
affected countries. There can be no assurance that market conditions will not worsen in the future.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Risks Related
to Our Investments</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Investments</FONT>
in <FONT STYLE="letter-spacing: -0.05pt">small capitalization companies present certain risks that may not exist </FONT>to <FONT STYLE="letter-spacing: -0.05pt">the
same degree as investments in larger, more established companies and will cause such investments to be volatile and speculative.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">We have invested
and may continue to invest, in private, small and/or new companies that may be in their early stages of development.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Investments </FONT>in
<FONT STYLE="letter-spacing: -0.05pt">these types </FONT>of <FONT STYLE="letter-spacing: -0.05pt">companies involve </FONT>a <FONT STYLE="letter-spacing: -0.05pt">number
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">significant risks, including the following:</FONT></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 46.1pt"></TD><TD STYLE="width: 10.2pt">&bull;</TD><TD STYLE="padding-right: 16.05pt"><FONT STYLE="letter-spacing: -0.05pt">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: 10pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 46.1pt"></TD><TD STYLE="width: 10.2pt">&bull;</TD><TD STYLE="padding-right: 28pt"><FONT STYLE="letter-spacing: -0.05pt">They may have no earnings </FONT>or <FONT STYLE="letter-spacing: -0.05pt">experienced
losses or may have limited financial resources and may be unable to meet their obligations under their securities, which may </FONT>be
<FONT STYLE="letter-spacing: -0.05pt">accompanied by</FONT> a <FONT STYLE="letter-spacing: -0.05pt">deterioration in the value
of their equity securities or any collateral or guarantees provided with respect </FONT>to <FONT STYLE="letter-spacing: -0.05pt">their
debt;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 46.1pt"></TD><TD STYLE="width: 10.2pt">&bull;</TD><TD STYLE="padding-right: 16.05pt"><FONT STYLE="letter-spacing: -0.05pt">They are more likely to depend on the management talents
and efforts of</FONT> a <FONT STYLE="letter-spacing: -0.05pt">small group</FONT> of <FONT STYLE="letter-spacing: -0.05pt">persons
and, as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result, the death, disability, resignation</FONT> or <FONT STYLE="letter-spacing: -0.05pt">termination
of one or more </FONT>of <FONT STYLE="letter-spacing: -0.05pt">those persons could have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material
adverse effect on their business and prospects and, in turn, on our investment;</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 46.1pt"></TD><TD STYLE="width: 10.2pt">&bull;</TD><TD><FONT STYLE="letter-spacing: -0.05pt">They may have difficulty accessing the capital markets to meet future capital needs;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 46.1pt"></TD><TD STYLE="width: 10.2pt">&bull;</TD><TD STYLE="text-align: justify; padding-right: 13.55pt"><FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">substantial risk of obsolescence and may require substantial additional
capital </FONT>to <FONT STYLE="letter-spacing: -0.05pt">support their operations, finance expansion </FONT>or <FONT STYLE="letter-spacing: -0.05pt">maintain
their competitive position; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/112% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 46.1pt"></TD><TD STYLE="width: 10.2pt">&bull;</TD><TD STYLE="padding-right: 12.5pt"><FONT STYLE="letter-spacing: -0.05pt">Generally little public information exists regarding these
companies, and investors in these companies generally must rely on the ability of the equity sponsor</FONT> to <FONT STYLE="letter-spacing: -0.05pt">obtain
adequate information</FONT> for <FONT STYLE="letter-spacing: -0.05pt">the purposes of evaluating potential returns and making </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">fully informed investment decision.</FONT></TD></TR></TABLE>

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">There
is uncertainty regarding the value of our privately held securities.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.65pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
net asset value is based on the value </FONT>we <FONT STYLE="letter-spacing: -0.05pt">assign to our portfolio investments. For
investments that are not listed </FONT>on a <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">significant event requiring </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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</FONT> materially <FONT STYLE="letter-spacing: -0.05pt">from
the</FONT> <FONT STYLE="letter-spacing: -0.1pt">value</FONT> <FONT STYLE="letter-spacing: -0.05pt">that would have been used had
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">ready market existed for the securities. We determine the fair value of investments
for which </FONT>no <FONT STYLE="letter-spacing: -0.05pt">market quotations are available based upon </FONT>a <FONT STYLE="letter-spacing: -0.05pt">methodology
that we believe reaches </FONT>a <FONT STYLE="letter-spacing: -0.05pt">reasonable estimation of fair value.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.65pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">However, we
do not necessarily apply multiple valuation metrics in reaching this determination and, in some cases, we do not obtain </FONT>any
<FONT STYLE="letter-spacing: -0.05pt">third party valuations before reaching this determination. Our determinations of the fair
value of </FONT>our <FONT STYLE="letter-spacing: -0.05pt">investments have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material
impact on our </FONT>net <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the fair value of our investments differ significantly from values
based on </FONT>a <FONT STYLE="letter-spacing: -0.05pt">ready market for these securities.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">We
depend upon Management for our future investment success.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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</FONT> a <FONT STYLE="letter-spacing: -0.05pt">significant
extent on the continued service and coordination of Management. Our success will depend on our ability</FONT> to <FONT STYLE="letter-spacing: -0.05pt">retain
our existing Management and to recruit additional other highly qualified individuals. </FONT>If we <FONT STYLE="letter-spacing: -0.05pt">are
unable </FONT>to <FONT STYLE="letter-spacing: -0.05pt">integrate new investment and management personnel, we may be unable to achieve
our desired investment results.</FONT></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Management
may not </FONT>be <FONT STYLE="letter-spacing: -0.05pt">able to implement our investment objective successfully.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
Board is taking </FONT>a <FONT STYLE="letter-spacing: -0.05pt">more opportunistic approach</FONT> to <FONT STYLE="letter-spacing: -0.05pt">our
portfolio investment strategy, shifting our investment emphasis from manufacturing and services to other sectors, such as energy.
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 </FONT>of <FONT STYLE="letter-spacing: -0.05pt">them have not previously been involved. Also,
we expect that our investment strategy will continue </FONT>to <FONT STYLE="letter-spacing: -0.05pt">require Management to investigate
and monitor investments that are much more broadly dispersed geographically. </FONT>In <FONT STYLE="letter-spacing: -0.05pt">addition,
Management is required to provide valuations for investments in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">broader range</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">securities, including debt securities, which may require expertise beyond that previously
required. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">cannot assure investors that the overall</FONT> risk <FONT STYLE="letter-spacing: -0.05pt">of</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.65pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">their investment
in the Fund will be reduced as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result of our investment strategy. If we cannot achieve
our investment objective successfully, the value </FONT>of <FONT STYLE="letter-spacing: -0.05pt">your investment in our common
stock could decline substantially.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">We
may not realize gains from our equity investments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
frequently invest in the equity securities of </FONT>our <FONT STYLE="letter-spacing: -0.05pt">portfolio companies. Also, when
we make </FONT>a <FONT STYLE="letter-spacing: -0.05pt">loan, we sometimes receive warrants to acquire stock issued</FONT> by <FONT STYLE="letter-spacing: -0.05pt">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. Some</FONT> of our <FONT STYLE="letter-spacing: -0.05pt">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, 2019,
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, 2019, the cost basis</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our portfolio
investments was $15.3 million and our estimated fair value was $42.1 million, although our equity investments in Equus Energy,
LLC and MVC Capital, Inc. had an aggregate fair value of $14.7 million versus </FONT>a <FONT STYLE="letter-spacing: -0.05pt">cost
basis </FONT>of $14.0 <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">risk
that we will not realize gains upon the sale of those or other equity interests that we hold.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Our
holdings in Equus Energy are subject to commodity price declines endemic </FONT>to <FONT STYLE="letter-spacing: -0.05pt">oil and
gas companies.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
oil and gas business is fundamentally </FONT>a <FONT STYLE="letter-spacing: -0.05pt">commodity-based enterprise. This means that
the operations and earnings of Equus Energy, LLC (&ldquo;Equus Energy&rdquo;) 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 </FONT>or
<FONT STYLE="letter-spacing: -0.05pt">conditions that affect supply and demand for the relevant commodity. In addition, the pricing
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">these commodities are highly dependent upon technological improvements in energy
production and development, energy efficiency, and seasonal weather patterns. Moreover, as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">worldwide
commodity, the price </FONT>of <FONT STYLE="letter-spacing: -0.05pt">oil and natural gas is also influenced by global demand, 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 </FONT>is <FONT STYLE="letter-spacing: -0.05pt">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
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">future capital expenditures for new drilling and recompletions, may be materially
adversely affected as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result of lower oil and gas prices (see <I>Risks Related to
the Coronavirus</I> above describing the effect of the coronavirus, as well as other geopolitical events, on oil and gas prices).</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
may not</FONT> be <FONT STYLE="letter-spacing: -0.05pt">able to make additional investments</FONT> in <FONT STYLE="letter-spacing: -0.05pt">our
portfolio companies from time to time, which may dilute our interests in such companies.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.9pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">After
our initial investment</FONT> in a <FONT STYLE="letter-spacing: -0.05pt">portfolio company, we may </FONT>be <FONT STYLE="letter-spacing: -0.05pt">called
upon from time </FONT>to <FONT STYLE="letter-spacing: -0.05pt">time to provide additional funds to such company, or may have the
opportunity to increase our investment in that company through the exercise of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">warrant
to purchase common stock or through follow-on investments </FONT>in <FONT STYLE="letter-spacing: -0.05pt">the debt or equity of
that company. We cannot assure you that we will make, </FONT>or <FONT STYLE="letter-spacing: -0.05pt">have</FONT> sufficient <FONT STYLE="letter-spacing: -0.05pt">funds
</FONT> to <FONT STYLE="letter-spacing: -0.05pt">make, any such follow-on investments. Any decision by</FONT> us <FONT STYLE="letter-spacing: -0.05pt">not
to make </FONT>a <FONT STYLE="letter-spacing: -0.05pt">follow-on investment</FONT> or <FONT STYLE="letter-spacing: -0.05pt">any
inability</FONT> on <FONT STYLE="letter-spacing: -0.05pt">our part to make such an investment may have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">negative
impact on </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio company </FONT>in <FONT STYLE="letter-spacing: -0.05pt">need
of investment and may result </FONT>in a <FONT STYLE="letter-spacing: -0.05pt">missed opportunity for </FONT>us to <FONT STYLE="letter-spacing: -0.05pt">increase
our participation in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">successful operation. </FONT>A <FONT STYLE="letter-spacing: -0.05pt">decision
not to make</FONT> a <FONT STYLE="letter-spacing: -0.05pt">follow-on investment</FONT> may <FONT STYLE="letter-spacing: -0.05pt">also
require us to subordinate our</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">debt interest </FONT>to
a <FONT STYLE="letter-spacing: -0.05pt">new lender or dilute our equity interest in, or reduce the expected yield on, our investment.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">We
have invested in</FONT> a <FONT STYLE="letter-spacing: -0.05pt">limited number</FONT> of <FONT STYLE="letter-spacing: -0.05pt">portfolio
companies.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.65pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
Fund is classified </FONT>as a <FONT STYLE="letter-spacing: -0.05pt">&ldquo;non-diversified&rdquo; investment company under the
1940 Act, which means </FONT>we are <FONT STYLE="letter-spacing: -0.05pt">not limited in the proportion</FONT> of our <FONT STYLE="letter-spacing: -0.05pt">assets
</FONT>that <FONT STYLE="letter-spacing: -0.05pt">may </FONT>be <FONT STYLE="letter-spacing: -0.05pt">invested in the securities
of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">single issuer. As </FONT>a <FONT STYLE="letter-spacing: -0.05pt">matter of policy,</FONT>
we <FONT STYLE="letter-spacing: -0.05pt">generally have not initially invested more than 25% of the value of our net assets in</FONT>
a <FONT STYLE="letter-spacing: -0.05pt">single portfolio company. In view of the net asset value of the Fund as of December 31,
2019, 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 </FONT>may
<FONT STYLE="letter-spacing: -0.05pt">result in more than 25% of our net assets being invested in</FONT> a <FONT STYLE="letter-spacing: -0.05pt">single
portfolio company at</FONT> a <FONT STYLE="letter-spacing: -0.05pt">particular time.</FONT></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 13.7pt 0 5.3pt; text-indent: 24.5pt">A <FONT STYLE="letter-spacing: -0.05pt">consequence
of</FONT> a <FONT STYLE="letter-spacing: -0.05pt">limited number of investments is that changes in business or industry trends
</FONT>or <FONT STYLE="letter-spacing: -0.05pt">in the financial condition, results</FONT> of <FONT STYLE="letter-spacing: -0.05pt">operations
</FONT>or <FONT STYLE="letter-spacing: -0.05pt">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</FONT> a <FONT STYLE="letter-spacing: -0.05pt">greater extent than would
be </FONT>the <FONT STYLE="letter-spacing: -0.05pt">case if we were </FONT>a <FONT STYLE="letter-spacing: -0.05pt">&ldquo;diversified&rdquo;
company holding</FONT> a <FONT STYLE="letter-spacing: -0.05pt">greater number of investments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">The
lack </FONT>of <FONT STYLE="letter-spacing: -0.05pt">liquidity</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our privately held
securities may adversely affect our business.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
portfolio investments consist principally of securities that are subject to restrictions on sale because they are not listed</FONT>
or <FONT STYLE="letter-spacing: -0.05pt">publicly traded securities. If any</FONT> of <FONT STYLE="letter-spacing: -0.05pt">these
securities were </FONT>to <FONT STYLE="letter-spacing: -0.05pt">become publicly traded, our ability to sell them may still</FONT>
be <FONT STYLE="letter-spacing: -0.05pt">restricted because we acquired them from the issuer in &ldquo;private placement&rdquo;
transactions or </FONT><FONT STYLE="letter-spacing: -0.1pt">because</FONT> <FONT STYLE="letter-spacing: -0.05pt">we may be deemed
to be an affiliate of the issuer. We will not</FONT> be <FONT STYLE="letter-spacing: -0.05pt">able to sell these securities publicly
without the expense and time required </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>or <FONT STYLE="letter-spacing: -0.05pt">generally. The illiquidity </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
investments may preclude or delay any disposition </FONT>of <FONT STYLE="letter-spacing: -0.05pt">such securities, which may make
it difficult for us </FONT>to <FONT STYLE="letter-spacing: -0.05pt">obtain cash equal </FONT>to <FONT STYLE="letter-spacing: -0.05pt">the
value at which we record</FONT> our <FONT STYLE="letter-spacing: -0.05pt">investments if the need arises.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 30.05pt 0 5.3pt; text-align: justify; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">In
situations where we hold junior priority liens, our ability to control decisions with respect </FONT>to <FONT STYLE="letter-spacing: -0.05pt">our
portfolio companies may </FONT>be <FONT STYLE="letter-spacing: -0.05pt">limited </FONT>by <FONT STYLE="letter-spacing: -0.05pt">lenders
holding superior liens. In</FONT> a <FONT STYLE="letter-spacing: -0.05pt">default scenario, the value of collateral may be insufficient
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">repay us after the senior priority lenders are paid in full.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
make certain loans to portfolio companies that are secured by </FONT>a <FONT STYLE="letter-spacing: -0.05pt">junior priority security
interest in the same collateral pledged </FONT>to <FONT STYLE="letter-spacing: -0.05pt">secure debt owed to lenders with liens
senior to ours. Often, the senior lender has procured covenants from the portfolio company prohibiting the incurrence of additional
secured debt without the senior lender's consent. </FONT>As a <FONT STYLE="letter-spacing: -0.05pt">condition of permitting the
portfolio company </FONT>to <FONT STYLE="letter-spacing: -0.05pt">incur junior secured indebtedness, the senior lender will require
that we, as junior lender, enter into an intercreditor agreement that, among other things, will establish the senior lender's right
to control the disposition of any collateral in the event of </FONT>an <FONT STYLE="letter-spacing: -0.05pt">insolvency proceeding
or other default situation. In addition, intercreditor agreements generally will expressly subordinate junior liens </FONT>to <FONT STYLE="letter-spacing: -0.05pt">senior
liens as well as the repayment</FONT> of <FONT STYLE="letter-spacing: -0.05pt">junior debt</FONT> to <FONT STYLE="letter-spacing: -0.05pt">senior
debt.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Because
of the control we may cede to senior lenders under intercreditor agreements, we may be unable </FONT>to <FONT STYLE="letter-spacing: -0.05pt">control
the manner</FONT> or <FONT STYLE="letter-spacing: -0.05pt">timing</FONT> of <FONT STYLE="letter-spacing: -0.05pt">collateral disposition.
In addition, the value </FONT>of <FONT STYLE="letter-spacing: -0.05pt">collateral securing our debt investment will ultimately
depend on market and economic conditions at the time of disposal, the availability</FONT> of <FONT STYLE="letter-spacing: -0.05pt">buyers
and other factors. Therefore, we cannot assure you that the proceeds, if any, from the sale or sales of all of the collateral would
be sufficient to satisfy the loan obligations secured by our liens. There is also </FONT>a <FONT STYLE="letter-spacing: -0.05pt">risk
that such collateral securing our investments will be difficult</FONT> to <FONT STYLE="letter-spacing: -0.05pt">sell in </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">timely manner or to appraise. If the proceeds of the collateral are insufficient to repay
our loans, then we will have an unsecured claim </FONT>to <FONT STYLE="letter-spacing: -0.05pt">the extent of the deficiency against
any</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the company's remaining assets, which claim will likely</FONT> be <FONT STYLE="letter-spacing: -0.05pt">shared
with many other unsecured creditors.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As</FONT>
a <FONT STYLE="letter-spacing: -0.05pt">debt or minority equity investor in</FONT> a <FONT STYLE="letter-spacing: -0.05pt">portfolio
company,</FONT> we <FONT STYLE="letter-spacing: -0.05pt">may have little direct influence over the entity. The stockholders and
management of the portfolio company may make decisions that could decrease the value of our portfolio holdings.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
make both debt and minority equity investments. Should </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio company make business
decisions with which we disagree, or the stockholders and management</FONT> of <FONT STYLE="letter-spacing: -0.05pt">that company
take risks or otherwise act in ways that do not serve our interests, the value of our portfolio holdings could decrease and have
an adverse effect on our financial position and results </FONT>of <FONT STYLE="letter-spacing: -0.05pt">operations.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
may choose to waive or defer enforcement of covenants in the debt securities held in our portfolio, which may cause us to lose
all</FONT> or <FONT STYLE="letter-spacing: -0.05pt">part of our investment in these companies.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
structure the debt investments in our portfolio companies to include business and financial covenants placing affirmative and negative
obligations on the operation of the company&rsquo;s business and its financial condition. However, from time to time we may elect
to waive breaches of these covenants, including our right to payment, or waive or defer enforcement of remedies, such as acceleration
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">obligations or foreclosure on collateral, depending upon the financial condition
and prospects of the particular portfolio company. These actions may reduce the likelihood of our receiving the full amount of
future payments of interest or principal and be accompanied by</FONT> a</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">deterioration
in the value of the underlying collateral as many of these companies may have limited financial resources, may</FONT> be <FONT STYLE="letter-spacing: -0.05pt">unable
to meet future obligations and may</FONT> go <FONT STYLE="letter-spacing: -0.05pt">bankrupt. This could negatively impact our ability
to </FONT>pay <FONT STYLE="letter-spacing: -0.05pt">dividends, could adversely affect our results of operation and financial condition
and cause the loss </FONT>of <FONT STYLE="letter-spacing: -0.05pt">all or part</FONT> of <FONT STYLE="letter-spacing: -0.05pt">your
investment.</FONT></P>

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">We
have limited public information regarding the companies in which we invest.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Except
for our holdings in MVC Capital, Inc., our portfolio consists entirely of securities issued by privately-held companies. There
is generally little </FONT>or <FONT STYLE="letter-spacing: -0.05pt">no publicly available information about such companies, and</FONT>
we <FONT STYLE="letter-spacing: -0.05pt">must rely on the diligence of Management</FONT> to <FONT STYLE="letter-spacing: -0.05pt">obtain
the information necessary for our decision</FONT> to <FONT STYLE="letter-spacing: -0.05pt">invest in them and in order to monitor
them </FONT><FONT STYLE="letter-spacing: -0.1pt">effectively.</FONT> <FONT STYLE="letter-spacing: -0.05pt">We cannot assure you
that such diligence efforts will uncover </FONT>all <FONT STYLE="letter-spacing: -0.05pt">material information about such privately
held businesses necessary</FONT> to <FONT STYLE="letter-spacing: -0.05pt">make fully informed investment decisions.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Our
portfolio companies may be highly leveraged.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Investments
in leveraged buyouts and </FONT>in <FONT STYLE="letter-spacing: -0.05pt">highly leveraged companies involve </FONT>a <FONT STYLE="letter-spacing: -0.05pt">high
degree of business and financial risk and can result in substantial losses. </FONT>A <FONT STYLE="letter-spacing: -0.05pt">leveraged
company&rsquo;s income and net assets will tend to increase or decrease at </FONT>a <FONT STYLE="letter-spacing: -0.05pt">greater
rate than if borrowed money were </FONT>not used. <FONT STYLE="letter-spacing: -0.05pt">The use </FONT>of <FONT STYLE="letter-spacing: -0.05pt">leverage
by portfolio companies also magnifies the increase or decrease in the value </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
investment as compared to the overall change in the enterprise value of</FONT> a <FONT STYLE="letter-spacing: -0.05pt">portfolio
company.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.3pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Some
of our portfolio companies have incurred substantial debt</FONT> in <FONT STYLE="letter-spacing: -0.05pt">relation </FONT>to their
<FONT STYLE="letter-spacing: -0.05pt">equity capital. Such indebtedness generally has </FONT>a <FONT STYLE="letter-spacing: -0.05pt">term
that will require that the balance of the loan be refinanced when it matures. </FONT>If a <FONT STYLE="letter-spacing: -0.05pt">portfolio
company cannot generate adequate cash flow</FONT> to <FONT STYLE="letter-spacing: -0.05pt">meet the principal and interest payments
</FONT>on <FONT STYLE="letter-spacing: -0.05pt">its debt </FONT>or <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>by <FONT STYLE="letter-spacing: -0.05pt">the portfolio company&rsquo;s reorganization </FONT>or <FONT STYLE="letter-spacing: -0.05pt">bankruptcy.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt">A <FONT STYLE="letter-spacing: -0.05pt">substantial
portion </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the debt incurred by portfolio companies may bear interest at rates that
fluctuate in accordance with</FONT> a <FONT STYLE="letter-spacing: -0.05pt">stated interest rate index or the prime lending rate.
The cash flow of</FONT> a <FONT STYLE="letter-spacing: -0.05pt">portfolio company may not be sufficient to meet increases in interest
payments</FONT> on <FONT STYLE="letter-spacing: -0.05pt">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 </FONT><FONT STYLE="letter-spacing: -0.1pt">rates.</FONT>
<FONT STYLE="letter-spacing: -0.05pt">In recent months, the level of interest rates has increased, which will have an adverse effect
on the ability of our portfolio companies to service their floating rate debt and </FONT>on <FONT STYLE="letter-spacing: -0.05pt">their
profits.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Leverage
may impair the ability of our portfolio companies </FONT>to <FONT STYLE="letter-spacing: -0.05pt">finance their future operations
and capital needs. As </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result, the ability</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our
portfolio companies to respond</FONT> to <FONT STYLE="letter-spacing: -0.05pt">changing business and economic conditions and to
business opportunities may be limited.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

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<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Our
business depends on external financing.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.75pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
business requires </FONT>a <FONT STYLE="letter-spacing: -0.05pt">substantial amount</FONT> of <FONT STYLE="letter-spacing: -0.05pt">cash
to operate. We may borrow funds </FONT>to <FONT STYLE="letter-spacing: -0.05pt">pay contingencies or expenses or </FONT>to <FONT STYLE="letter-spacing: -0.05pt">make
investments, to maintain our pass-through tax status as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC under Subchapter</FONT>
M of <FONT STYLE="letter-spacing: -0.05pt">the Code. We are permitted under the 1940 Act </FONT>to <FONT STYLE="letter-spacing: -0.05pt">borrow
if, immediately after the borrowing, we have an asset coverage ratio of at least 150%. That is, we may borrow an amount equal to
double the fair value </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our total net assets (including investments made with borrowed
funds). The amount and nature of</FONT> any <FONT STYLE="letter-spacing: -0.05pt">such borrowings depend upon </FONT>a <FONT STYLE="letter-spacing: -0.05pt">number
of factors over which </FONT>we <FONT STYLE="letter-spacing: -0.05pt">have no control, including general economic conditions, conditions
</FONT>in <FONT STYLE="letter-spacing: -0.05pt">the financial markets and the impact</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the
financing on the tax treatment of our stockholders. The use of leverage, even on</FONT> a <FONT STYLE="letter-spacing: -0.05pt">short-term
basis, could have the effect of magnifying increases or decreases in our net asset value.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.55pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">While
the &ldquo;spread&rdquo; between the current yields on our investments and the cost of any loan would augment the
return</FONT> to <FONT STYLE="letter-spacing: -0.05pt">our stockholders, if the spread narrows (because of an increase in the
cost of debt or insufficient income </FONT>on <FONT STYLE="letter-spacing: -0.05pt">our investments), our </FONT>net <FONT STYLE="letter-spacing: -0.05pt">investment
income, and consequently our ability to provide distributions </FONT>to <FONT STYLE="letter-spacing: -0.05pt">our
stockholders, could be adversely affected. This may also render us unable</FONT> to meet our obligations to our lenders,
which might then require us <FONT STYLE="letter-spacing: -0.05pt">to liquidate </FONT>some or all of our <FONT STYLE="letter-spacing: -0.05pt">investments.
We cannot assure you that we would realize full value for our investments or recoup all of </FONT>our <FONT STYLE="letter-spacing: -0.05pt">capital
if we needed</FONT> to <FONT STYLE="letter-spacing: -0.05pt">liquidate our portfolio investments.</FONT></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.55pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Many
financial institutions are unwilling to lend against </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio</FONT> of <FONT STYLE="letter-spacing: -0.05pt">illiquid,
private securities. The make-up</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our portfolio has made</FONT> it <FONT STYLE="letter-spacing: -0.05pt">more
difficult for </FONT>us to <FONT STYLE="letter-spacing: -0.05pt">borrow at the level and on the terms that we desire. Our borrowings
have historically consisted of</FONT> a <FONT STYLE="letter-spacing: -0.05pt">revolving line of credit which has since expired,
and </FONT>a <FONT STYLE="letter-spacing: -0.05pt">margin account used quarterly to enable us to achieve adequate diversification
to maintain our pass- through tax status as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC. Although we believe the Fund&rsquo;s
liquidity is sufficient for our operating expenses for the next twelve months, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">could
</FONT>be <FONT STYLE="letter-spacing: -0.05pt">wrong. If </FONT>we <FONT STYLE="letter-spacing: -0.05pt">are wrong, we would have
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">obtain capital from other sources to pay Fund expenses, which could involve selling
one </FONT> or <FONT STYLE="letter-spacing: -0.05pt">more of our portfolio holdings at an inopportune time and at </FONT>a <FONT STYLE="letter-spacing: -0.05pt">price
that may be less than would be received if such holding were sold in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">more competitive
and orderly manner.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
costs of borrowing money may exceed the income from the portfolio securities we purchase with the borrowed money. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">will
suffer </FONT>a <FONT STYLE="letter-spacing: -0.05pt">decline in net asset value if the investment performance of the additional
securities purchased with borrowed money fails </FONT>to <FONT STYLE="letter-spacing: -0.05pt">cover their cost to the Fund (including
any interest paid on the money borrowed). </FONT>A <FONT STYLE="letter-spacing: -0.05pt">decline in net asset value could affect
our ability to make distributions </FONT>on <FONT STYLE="letter-spacing: -0.05pt">our common stock. Our failure </FONT>to <FONT STYLE="letter-spacing: -0.05pt">distribute
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">sufficient portion of our net investment income and net realized capital gains could
result in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">loss of pass-through tax status or subject </FONT>us <FONT STYLE="letter-spacing: -0.05pt">to
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">4% excise tax. If the asset coverage for debt securities issued by the Fund declines
to less than</FONT> 15<FONT STYLE="letter-spacing: -0.05pt">0% (as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result of market
fluctuations</FONT> or <FONT STYLE="letter-spacing: -0.05pt">otherwise), </FONT>we <FONT STYLE="letter-spacing: -0.05pt">may be
required to sell </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portion </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our investments
when it is disadvantageous to do </FONT>so. <FONT STYLE="letter-spacing: -0.05pt">See <I>Management&rsquo;s Discussion and Analysis</I></FONT><I>
of <FONT STYLE="letter-spacing: -0.05pt">Financial Condition and Results of Operations</FONT></I><FONT STYLE="letter-spacing: -0.05pt">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">We
have had net investment losses in the past five years.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
have had </FONT>net <FONT STYLE="letter-spacing: -0.05pt">investment losses in the past five years, with</FONT> a <FONT STYLE="letter-spacing: -0.05pt">net
investment loss of $3.4 million for the year ended December 31, 2019. We cannot assure you that</FONT> we <FONT STYLE="letter-spacing: -0.05pt">will
be able to increase our net assets or generate</FONT> net investment <FONT STYLE="letter-spacing: -0.05pt">income. If we fail </FONT>to
<FONT STYLE="letter-spacing: -0.1pt">increase</FONT> <FONT STYLE="letter-spacing: -0.05pt">the Fund&rsquo;s net assets or generate
net investment income, such failure will likely have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material adverse effect upon
the Fund, our results of operation, and our financial condition. You could lose all</FONT> or a <FONT STYLE="letter-spacing: -0.05pt">substantial
amount of your investment</FONT> in <FONT STYLE="letter-spacing: -0.05pt">the Fund as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">We do not currently
intend</FONT> to <FONT STYLE="letter-spacing: -0.05pt">recommence our managed distribution policy and you might not receive dividends
on your shares.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">On
March 24, 2009, we announced</FONT> a <FONT STYLE="letter-spacing: -0.05pt">suspension of our managed distribution policy and payment
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">quarterly dividends for an indefinite period. 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 </FONT>of <FONT STYLE="letter-spacing: -0.05pt">attractive investment opportunities
to</FONT> us <FONT STYLE="letter-spacing: -0.05pt">and revising our investment strategy </FONT>to <FONT STYLE="letter-spacing: -0.05pt">include
more recurrent cash income producing investments, all of which could ultimately result </FONT>in</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">the resumption</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">our managed distribution policy at some time in the future. The implementation </FONT>of
<FONT STYLE="letter-spacing: -0.05pt">these revisions </FONT>to <FONT STYLE="letter-spacing: -0.05pt">our investment strategy and
the recurrent generation </FONT>of <FONT STYLE="letter-spacing: -0.05pt">cash income from our investments, however, cannot be guaranteed
and will not occur if we complete the Consolidation. If we were unable to resume </FONT>our <FONT STYLE="letter-spacing: -0.05pt">managed
distribution policy and were further unable to profitably sell</FONT> or <FONT STYLE="letter-spacing: -0.05pt">otherwise dispose
of our portfolio company investments, you might not receive dividends on your shares.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

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<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">We
operate </FONT>in a <FONT STYLE="letter-spacing: -0.05pt">highly competitive market for investment opportunities.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.9pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
compete with </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">investment vehicles seeking small capitalization investments has increased dramatically.
Many of our competitors are substantially larger and have considerably greater financial resources than we</FONT> do, and <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>in <FONT STYLE="letter-spacing: -0.05pt">these
larger transactions. These competitors may have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">lower cost </FONT>of <FONT STYLE="letter-spacing: -0.05pt">funds
and many have access to funding sources that are not available </FONT>to <FONT STYLE="letter-spacing: -0.05pt">us. </FONT>In <FONT STYLE="letter-spacing: -0.05pt">addition,
some of our competitors may have higher risk tolerances or different risk assessments, which could allow them to consider </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">wider variety of investments and establish</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">more relationships
and build their market shares. As </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result </FONT>of <FONT STYLE="letter-spacing: -0.05pt">this
competition, we may not be able </FONT>to <FONT STYLE="letter-spacing: -0.05pt">take advantage of attractive investment opportunities
from time </FONT>to <FONT STYLE="letter-spacing: -0.05pt">time. We cannot assure</FONT> you that the <FONT STYLE="letter-spacing: -0.05pt">competitive
pressures we face will not have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material adverse effect on our business, financial
condition </FONT>and <FONT STYLE="letter-spacing: -0.05pt">results of operations.</FONT></P>

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




<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">An
economic downturn could affect our operating results.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">An
economic downturn may have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">particularly adverse effect upon small and medium-sized
companies, which </FONT>are <FONT STYLE="letter-spacing: -0.05pt">our primary </FONT><FONT STYLE="letter-spacing: -0.1pt">market</FONT>
<FONT STYLE="letter-spacing: -0.05pt">for investments. During periods </FONT>of <FONT STYLE="letter-spacing: -0.05pt">volatile
economic conditions, 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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material
adverse effect on our business, financial condition and results </FONT>of <FONT STYLE="letter-spacing: -0.05pt">operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">We
may experience fluctuations in our quarterly results.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
may experience fluctuations in our quarterly operating results due to </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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</FONT> to <FONT STYLE="letter-spacing: -0.05pt">find and close suitable
investments and general economic conditions. The volatility of our results is exacerbated by our relatively small number </FONT>of
<FONT STYLE="letter-spacing: -0.05pt">investments. As </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result</FONT> of <FONT STYLE="letter-spacing: -0.05pt">these
factors, you should not rely on our results for any period as being indicative </FONT>of <FONT STYLE="letter-spacing: -0.05pt">performance
in future periods.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt/11.5pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Before
making our investments, we conduct due diligence that we deem reasonable and appropriate based on the facts and</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">circumstances
applicable to each investment. The objective of </FONT>the <FONT STYLE="letter-spacing: -0.05pt">due diligence process is to identify
attractive investment opportunities based</FONT> on <FONT STYLE="letter-spacing: -0.05pt">the facts and circumstances surrounding
an investment and to prepare</FONT> a <FONT STYLE="letter-spacing: -0.05pt">framework that may </FONT>be <FONT STYLE="letter-spacing: -0.05pt">used
from the date of an acquisition</FONT> to</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.95pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">drive operational
achievement and value creation. When conducting due diligence, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">evaluate </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">number of important business, financial, tax, accounting, environmental and legal issues
</FONT>in <FONT STYLE="letter-spacing: -0.05pt">determining whether or not to proceed with an investment. Our due diligence review
with respect to </FONT>a <FONT STYLE="letter-spacing: -0.05pt">potential portfolio company typically includes, </FONT>but <FONT STYLE="letter-spacing: -0.05pt">is
not limited to,</FONT> a <FONT STYLE="letter-spacing: -0.05pt">review of historical and prospective financial information including
audits and budgets, on-site visits and interviews with management, employees, customers and vendors, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">review
of business plans and an analysis </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the consistency</FONT> of <FONT STYLE="letter-spacing: -0.05pt">operations
with those plans, and other research relating </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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</FONT> on the <FONT STYLE="letter-spacing: -0.05pt">type
of investment. Nevertheless, when conducting due diligence and making an assessment regarding an investment, we are required to
rely on resources available </FONT>to <FONT STYLE="letter-spacing: -0.05pt">us, including information provided</FONT> by <FONT STYLE="letter-spacing: -0.05pt">the
portfolio company and, in some circumstances, third party investigations. The due diligence process may at times be subjective,
including with respect</FONT> to <FONT STYLE="letter-spacing: -0.05pt">newly organized companies for which only limited information
is available. Accordingly, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">cannot assure you that the due diligence investigation
that we will carry out with respect to any investment opportunity will reveal </FONT>or <FONT STYLE="letter-spacing: -0.05pt">highlight
all relevant facts </FONT>that <FONT STYLE="letter-spacing: -0.05pt">may be necessary</FONT> or <FONT STYLE="letter-spacing: -0.05pt">helpful
in evaluating such investment opportunity. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">also cannot assure you that such an
investigation will result </FONT>in <FONT STYLE="letter-spacing: -0.05pt">an investment being</FONT> <FONT STYLE="letter-spacing: -0.1pt">successful.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

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<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>Risks Related to Our Use of Leverage</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0 4.5pt; text-indent: 31.5pt"><B><I>The use of leverage may
adversely affect our performance.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0 9pt; text-indent: 27pt">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 Times New Roman, Times, Serif; margin: 0.55pt 0 0 9pt; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0 4.5pt; text-indent: 31.5pt"><B><I>The use of leverage may
cause us to sell our portfolio interests prematurely.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0 9pt; text-indent: 27pt">If we remain a BDC and borrow monies
for our additional portfolio investments, we may secure loans or otherwise borrow funds from conventional banks, other lending
institutions, or private parties, which parties may include the sellers of the investment interests being acquired. In the event
Equus defaults under any of these borrowing arrangements, our business could be adversely affected as we may be forced to sell
a portion of our investments quickly and prematurely at what may be disadvantageous prices to us in order to meet our outstanding
payment obligations, the result of which would have a material adverse effect on our business, financial condition, results of
operations and cash flows.</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0.55pt 0 0 9pt; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0 9pt; text-indent: 27pt"><B><I>The use of leverage will increase
our exposure to changes in market rates of interest.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0 9pt; text-indent: 27pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0 9pt; text-indent: 27pt">To date, we have not incurred leverage
to acquire portfolio investments. If we begin to take on leverage to make portfolio investments, we will be subject to risks associated
with the current interest rate environment and changes in interest rates will affect our cost of capital and net investment income.
The use of leverage will also affect our net investment income, which will depend, in part, upon the difference between the rate
at which we borrow funds and the rate at which we invest those funds. As a result, we cannot assure you that a significant change
in market interest rates would not have a material adverse effect on our net investment income.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Risks Related
to Our Business and </FONT><FONT STYLE="letter-spacing: -0.1pt">Structure</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Our
ability to invest in private companies may be limited in certain circumstances.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Pursuant
to our Plan of Reorganization, we have been authorized by our stockholders to withdraw our election to be classified as </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">BDC prior to</FONT> March 31, 2020<FONT STYLE="letter-spacing: -0.05pt">. Our management</FONT>
is <FONT STYLE="letter-spacing: -0.05pt">currently evaluating potential transactions that would result in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation</FONT>
and <FONT STYLE="letter-spacing: -0.05pt">the withdrawal </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our BDC election within
this time frame, but we may nevertheless not consummate any such Consolidation and remain </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC.
If </FONT>we <FONT STYLE="letter-spacing: -0.05pt">maintain our status as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC and
do not complete the Consolidation to become an operating company or a permanent capital vehicle, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">must
not acquire any assets other than &ldquo;qualifying assets&rdquo; unless, at the time </FONT>of <FONT STYLE="letter-spacing: -0.05pt">and
after giving effect to such acquisition, at least 70% of our total assets are qualifying assets. </FONT>A <FONT STYLE="letter-spacing: -0.05pt">principal
category of qualifying assets relevant to our business is securities purchased in transactions not involving any public offering
from issuers that qualify as eligible portfolio companies under the 1940 Act. Investments in companies organized outside of the
United States or having </FONT>a <FONT STYLE="letter-spacing: -0.05pt">principal place of business outside of the United States
are also not considered eligible portfolio companies.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Any
failure on our part </FONT>to <FONT STYLE="letter-spacing: -0.05pt">maintain the Fund&rsquo;s status as</FONT> a <FONT STYLE="letter-spacing: -0.05pt">BDC
could reduce our operating flexibility.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">If
</FONT>we do <FONT STYLE="letter-spacing: -0.05pt">not maintain the Fund&rsquo;s status as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC
and </FONT>we do <FONT STYLE="letter-spacing: -0.05pt">not complete the Consolidation, we might be regulated as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">closed-end
investment company under the 1940 Act, which would subject us </FONT>to <FONT STYLE="letter-spacing: -0.05pt">substantially more
regulatory restrictions under the 1940 Act. This could impose tighter limitations on Equus</FONT> in <FONT STYLE="letter-spacing: -0.05pt">terms</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">the use of leverage and transactions with affiliated entities. Such developments could
correspondingly decrease our operating flexibility.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0"></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">We
may not continue to qualify as</FONT> a <FONT STYLE="letter-spacing: -0.05pt">RIC under the Code.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">To
remain entitled </FONT>to <FONT STYLE="letter-spacing: -0.05pt">the tax benefits accorded to RICs under the Code while we maintain
our status as</FONT> a <FONT STYLE="letter-spacing: -0.05pt">BDC, we must meet certain income source, asset diversification and
annual distribution requirements. To qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC, we must derive each taxable
year at least 90%</FONT> of our gross income <FONT STYLE="letter-spacing: -0.05pt">from dividends, interest, payments with respect
to certain securities loans, gains from the sale </FONT>of <FONT STYLE="letter-spacing: -0.05pt">stock</FONT> or <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>in <FONT STYLE="letter-spacing: -0.05pt">certain &ldquo;qualified&rdquo; publicly
traded partnerships. The annual distribution requirement for </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC is satisfied </FONT>if
<FONT STYLE="letter-spacing: -0.05pt">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, </FONT>to <FONT STYLE="letter-spacing: -0.05pt">our stockholders
on an annual basis. As discussed above in <I>&ldquo;Our business depends on external financing,&rdquo;</I> we historically have
borrowed funds necessary to make qualifying investments to satisfy the Subchapter </FONT>M <FONT STYLE="letter-spacing: -0.05pt">diversification
requirements. </FONT>If we <FONT STYLE="letter-spacing: -0.05pt">fail to satisfy</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">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 </FONT>to <FONT STYLE="letter-spacing: -0.05pt">deduct distributions paid </FONT>to <FONT STYLE="letter-spacing: -0.05pt">stockholders.
In addition, our distributions will</FONT> be <FONT STYLE="letter-spacing: -0.05pt">taxable as dividends </FONT>to <FONT STYLE="letter-spacing: -0.05pt">the
extent paid from earnings and profits. We may also cease to qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC, or be
subject to income tax and/or </FONT>a <FONT STYLE="letter-spacing: -0.05pt">4% excise tax, if we fail to distribute </FONT>a <FONT STYLE="letter-spacing: -0.05pt">sufficient
portion of our net investment income and net realized capital gains. The loss of our RIC qualification would have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material
adverse effect</FONT> on <FONT STYLE="letter-spacing: -0.05pt">the total return, </FONT>if <FONT STYLE="letter-spacing: -0.05pt">any,
obtainable from an investment</FONT> in <FONT STYLE="letter-spacing: -0.05pt">our common stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Because
we intend to distribute substantially all of our income and </FONT>net <FONT STYLE="letter-spacing: -0.05pt">realized capital gains
to our stockholders, </FONT>if <FONT STYLE="letter-spacing: -0.05pt">we continue</FONT> to <FONT STYLE="letter-spacing: -0.05pt">operate
</FONT>as a <FONT STYLE="letter-spacing: -0.05pt">BDC and </FONT>as a <FONT STYLE="letter-spacing: -0.05pt">RIC, we will </FONT>need
<FONT STYLE="letter-spacing: -0.05pt">additional capital </FONT>to <FONT STYLE="letter-spacing: -0.05pt">finance our growth.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.9pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Pursuant
to our Plan of Reorganization, we have been authorized by our stockholders to withdraw our election to be classified as </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">BDC</FONT> on <FONT STYLE="letter-spacing: -0.05pt">or prior to</FONT> March 31, 2020<FONT STYLE="letter-spacing: -0.05pt">,
which also means that we will not operate as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC. Our management</FONT> is <FONT STYLE="letter-spacing: -0.05pt">currently
evaluating potential transactions that would result in</FONT> a <FONT STYLE="letter-spacing: -0.05pt">Consolidation and the withdrawal
of our BDC election and </FONT>RIC <FONT STYLE="letter-spacing: -0.05pt">status within this time frame, </FONT>but <FONT STYLE="letter-spacing: -0.05pt">we
</FONT>may <FONT STYLE="letter-spacing: -0.05pt">nevertheless not consummate any such Consolidation and remain </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC
and continue </FONT>to <FONT STYLE="letter-spacing: -0.05pt">seek to qualify as</FONT> a <FONT STYLE="letter-spacing: -0.05pt">RIC.
In order to qualify </FONT>as a <FONT STYLE="letter-spacing: -0.05pt">RIC, to avoid payment </FONT>of <FONT STYLE="letter-spacing: -0.05pt">excise
taxes and </FONT>to <FONT STYLE="letter-spacing: -0.05pt">minimize or avoid payment of income taxes, for so long as we maintain
our status as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC, we intend to distribute to our stockholders substantially all
of </FONT>our <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>to <FONT STYLE="letter-spacing: -0.05pt">our stockholders).</FONT> As a <FONT STYLE="letter-spacing: -0.05pt">BDC,
we are generally required to meet </FONT>a <FONT STYLE="letter-spacing: -0.05pt">coverage ratio</FONT> of <FONT STYLE="letter-spacing: -0.05pt">total
assets to total senior securities, which includes all </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our borrowings and any preferred
stock we may issue </FONT>in <FONT STYLE="letter-spacing: -0.05pt">the future,</FONT> of <FONT STYLE="letter-spacing: -0.05pt">at
least 200%. This requirement limits the amount that we may borrow.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Because we
will continue to need capital to grow our investment portfolio, this limitation may prevent us from incurring debt </FONT>and <FONT STYLE="letter-spacing: -0.05pt">require
</FONT>us <FONT STYLE="letter-spacing: -0.05pt">to issue additional equity at </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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. </FONT>In <FONT STYLE="letter-spacing: -0.05pt">addition,
as</FONT> a <FONT STYLE="letter-spacing: -0.05pt">BDC, we are generally not permitted</FONT> to <FONT STYLE="letter-spacing: -0.05pt">issue
equity securities priced below net asset value without stockholder approval. If additional funds are not available to us, </FONT>we
<FONT STYLE="letter-spacing: -0.05pt">could </FONT>be <FONT STYLE="letter-spacing: -0.05pt">forced to curtail or cease new lending
and investment activities, and </FONT>our <FONT STYLE="letter-spacing: -0.05pt">net asset value could decline.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
Board of Directors may change our investment objective, operating policies and strategies without prior notice</FONT> or <FONT STYLE="letter-spacing: -0.05pt">stockholder
approval.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
Board of Directors has the authority</FONT> to <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our business so as to cease to be, or withdraw
our election as, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC. As described above under &ldquo;<I>Significant Developments</I></FONT><I>
&ndash; <FONT STYLE="letter-spacing: -0.05pt">Authorization to Withdraw BDC Election</FONT></I><FONT STYLE="letter-spacing: -0.05pt">&rdquo;,
our shareholders have recently provided this authorization </FONT>and may do <FONT STYLE="letter-spacing: -0.05pt">so again</FONT>
in <FONT STYLE="letter-spacing: -0.05pt">the future, although we will not withdraw our election as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC
unless and until we have entered into </FONT>a <FONT STYLE="letter-spacing: -0.05pt">definitive agreement to effect </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation.
We cannot predict the effect any changes </FONT>to <FONT STYLE="letter-spacing: -0.05pt">our current operating policies and strategies
would have </FONT>on <FONT STYLE="letter-spacing: -0.05pt">our business, operating results and value of our stock.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Nevertheless, any
such effects may adversely affect our business and impact our ability to make distributions.</FONT></P>

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

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

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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Risks Related
to Our Operation </FONT>as a <FONT STYLE="letter-spacing: -0.05pt">BDC</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Our
ability to enter into transactions with our affiliates is restricted.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Pursuant
to our Plan of Reorganization, we have been authorized by our stockholders to withdraw our election to be classified as </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">BDC prior to</FONT> March 31, 2020<FONT STYLE="letter-spacing: -0.05pt">. Our management</FONT>
is <FONT STYLE="letter-spacing: -0.05pt">currently evaluating potential transactions that would result in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation</FONT>
and <FONT STYLE="letter-spacing: -0.05pt">the withdrawal </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our BDC election within
this time frame, but we may nevertheless not consummate any such Consolidation and remain </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC.
If </FONT>we <FONT STYLE="letter-spacing: -0.05pt">maintain our status as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC and
do not complete the Consolidation to become an operating company or a permanent capital vehicle, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">will
continue to </FONT>be <FONT STYLE="letter-spacing: -0.05pt">subject to the 1940 Act. As an investment company, 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</FONT> or <FONT STYLE="letter-spacing: -0.05pt">indirectly,
5% </FONT>or <FONT STYLE="letter-spacing: -0.05pt">more of our outstanding voting securities is our affiliate for purposes </FONT>of
<FONT STYLE="letter-spacing: -0.05pt">the 1940 Act, </FONT>and <FONT STYLE="letter-spacing: -0.05pt">we generally are prohibited
from buying or selling any security from or</FONT> to <FONT STYLE="letter-spacing: -0.05pt">such affiliate, absent the prior approval
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">our independent directors. The 1940 Act also prohibits certain &ldquo;joint&rdquo;
transactions with certain </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our affiliates, which could include investments in the
same portfolio company (whether at the same or different times), without prior approval </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
independent directors and, in some cases, the SEC. If </FONT>a <FONT STYLE="letter-spacing: -0.05pt">person acquires more than
25% of our voting securities, we are prohibited from buying or selling any security from or </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>or <FONT STYLE="letter-spacing: -0.05pt">directors
or their affiliates.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Regulations
governing our operation</FONT> as a <FONT STYLE="letter-spacing: -0.05pt">BDC affect our ability to, and the way</FONT> in <FONT STYLE="letter-spacing: -0.05pt">which
we, raise additional capital.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
business requires </FONT>a <FONT STYLE="letter-spacing: -0.05pt">substantial amount</FONT> of <FONT STYLE="letter-spacing: -0.05pt">additional
capital. We may acquire additional capital from the issuance of senior securities </FONT>or <FONT STYLE="letter-spacing: -0.05pt">other
indebtedness, the issuance of additional shares of our common stock or from securitization transactions. However, we may not be
able </FONT>to <FONT STYLE="letter-spacing: -0.05pt">raise additional capital in the future </FONT>on <FONT STYLE="letter-spacing: -0.05pt">favorable
terms </FONT>or <FONT STYLE="letter-spacing: -0.05pt">at all. We may issue debt securities or preferred securities, which we refer
to collectively as &ldquo;senior securities,&rdquo; and</FONT> we <FONT STYLE="letter-spacing: -0.05pt">may borrow money from banks
or other financial institutions, up to the maximum amount permitted by the 1940 Act. The 1940 Act permits </FONT>us <FONT STYLE="letter-spacing: -0.05pt">to
issue senior securities or incur indebtedness only</FONT> in <FONT STYLE="letter-spacing: -0.05pt">amounts such that our asset
coverage, as defined in the 1940 Act, equals at least 150% after such issuance or incurrence. </FONT>Our <FONT STYLE="letter-spacing: -0.05pt">ability
to pay dividends or issue additional</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.25pt 0 5.3pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">senior
securities would be restricted </FONT>if <FONT STYLE="letter-spacing: -0.05pt">our asset coverage ratio were not at least 150%.
If the value of our assets declines, we may </FONT>be <FONT STYLE="letter-spacing: -0.05pt">unable to satisfy this test. If that
happens, we may be required to liquidate </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portion of our investments and repay </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">portion of our indebtedness at </FONT>a <FONT STYLE="letter-spacing: -0.05pt">time when such
sales may </FONT>be <FONT STYLE="letter-spacing: -0.05pt">disadvantageous.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Senior
Securities</I>. As </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result </FONT>of <FONT STYLE="letter-spacing: -0.05pt">issuing
senior securities, we would also be exposed to typical risks associated with leverage, including an increased risk of loss. </FONT>If
<FONT STYLE="letter-spacing: -0.05pt">we issue preferred securities, they would rank &ldquo;senior&rdquo; to common stock </FONT>in
<FONT STYLE="letter-spacing: -0.05pt">our capital structure. Preferred stockholders would have separate voting rights and may have
rights, preferences or privileges more favorable than that</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our common stockholders.
Furthermore, the issuance of preferred securities could have the effect of delaying, deferring or preventing </FONT>a <FONT STYLE="letter-spacing: -0.05pt">transaction</FONT>
or a <FONT STYLE="letter-spacing: -0.05pt">change of control that might involve </FONT>a <FONT STYLE="letter-spacing: -0.05pt">premium
price for our common stockholders or otherwise </FONT>be <FONT STYLE="letter-spacing: -0.05pt">in your best interest.</FONT></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Additional
Common Stock.</I> Our Board of Directors may decide </FONT>to <FONT STYLE="letter-spacing: -0.05pt">issue common stock to finance
our operations rather than issuing debt or other senior securities. As </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC, we are
generally not able to issue our common stock </FONT>at a <FONT STYLE="letter-spacing: -0.05pt">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</FONT>
our <FONT STYLE="letter-spacing: -0.05pt">securities are to</FONT> be <FONT STYLE="letter-spacing: -0.05pt">issued and sold may
not be less than</FONT> a <FONT STYLE="letter-spacing: -0.05pt">price, that in the determination of our Board of Directors, closely
approximates the market value of such securities (less any commission</FONT> or <FONT STYLE="letter-spacing: -0.05pt">discount).
</FONT>We <FONT STYLE="letter-spacing: -0.05pt">may also make rights offerings </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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,</FONT> or <FONT STYLE="letter-spacing: -0.05pt">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: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

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<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Changes</FONT>
in <FONT STYLE="letter-spacing: -0.05pt">the laws or regulations governing our business, or changes in the interpretations thereof,
and any failure by us to comply with these laws</FONT> or <FONT STYLE="letter-spacing: -0.05pt">regulations, could negatively affect
the profitability</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our operations<FONT STYLE="font-weight: normal">.</FONT></FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">To
the extent we remain </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC, 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 </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>we <FONT STYLE="letter-spacing: -0.05pt">currently
conduct business, we may have to incur significant expenses in order to comply or we might have to restrict our operations. </FONT>In
<FONT STYLE="letter-spacing: -0.05pt">addition,</FONT> if <FONT STYLE="letter-spacing: -0.05pt">we do not comply with applicable
laws,</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.9pt 0 5.3pt; text-indent: -0.05pt"><FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material adverse effect upon our business, results of operations</FONT>
or <FONT STYLE="letter-spacing: -0.05pt">financial condition.</FONT></P>

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Risks Related
to Our Announced Plan of Reorganization</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 12.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Pursuant
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">our Plan of Reorganization, we are exploring and evaluating strategic alternatives
for the Fund and we cannot assure you that we will be successful in identifying</FONT> a <FONT STYLE="letter-spacing: -0.05pt">strategic
alternative, that such strategic alternative will yield additional value for our stockholders or that the process will not have
an adverse impact on our business.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">On
May 14, 2014, we announced that we had adopted </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Plan of Reorganization within the
meaning </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Section 2(a)(33)</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the 1940
Act. The Plan </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Reorganization contemplates the possible merger of the Fund with
and into another BDC, or the restructuring </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the Fund as an operating company </FONT>no
<FONT STYLE="letter-spacing: -0.05pt">longer subject to the 1940 Act, which is referred to in the Plan of Reorganization as </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">&ldquo;Consolidation&rdquo;.</FONT> A <FONT STYLE="letter-spacing: -0.05pt">Consolidation
could constitute, among other things, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">sale </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Equus,
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">restructuring, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">recapitalization,
merger, or other business combination. Our Board have also authorized the transformation of Equus into a permanent capital vehicle.
</FONT>We <FONT STYLE="letter-spacing: -0.05pt">cannot provide any assurance that the exploration of strategic alternatives will
result in the identification or consummation</FONT> of a <FONT STYLE="letter-spacing: -0.05pt">Consolidation or the transformation
of Equus into a permanent capital vehicle. Similarly, any strategic decision will involve risks and uncertainties, and we cannot
provide any assurance that any strategic alternative, if identified, evaluated and consummated, will provide the anticipated</FONT>
<FONT STYLE="letter-spacing: -0.1pt">benefits</FONT> <FONT STYLE="letter-spacing: -0.05pt">or otherwise enhance stockholder value.
The process is ongoing and, although we believe we will consummate</FONT> a <FONT STYLE="letter-spacing: -0.05pt">Consolidation
or other transformative transaction during 2020, we may </FONT>be <FONT STYLE="letter-spacing: -0.05pt">wrong. Our Board </FONT>of
<FONT STYLE="letter-spacing: -0.05pt">Directors has not set </FONT>a <FONT STYLE="letter-spacing: -0.05pt">timetable for completion
of the evaluation of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">potential Consolidation.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
expect</FONT> to <FONT STYLE="letter-spacing: -0.05pt">incur substantial costs associated with identifying and evaluating potential
strategic alternatives incident to </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation. Any potential transaction would
be dependent upon </FONT>a <FONT STYLE="letter-spacing: -0.05pt">number of factors that may be beyond our control, including, among
other factors, market conditions, industry trends, the interest of third parties in our business, stockholder approval and the
availability of financing to potential buyers or</FONT> to <FONT STYLE="letter-spacing: -0.05pt">Equus on reasonable terms. The
process of exploring strategic alternatives may be time consuming and disruptive to our business operations. We are also subject
to other risks in connection with the uncertainty created by the strategic review process, including stock price volatility and
the ability to retain qualified employees. We do not currently intend to disclose further developments with respect</FONT> to <FONT STYLE="letter-spacing: -0.05pt">this
process, unless and until our Board of Directors approves </FONT>a <FONT STYLE="letter-spacing: -0.05pt">specific transaction or
otherwise concludes the review of strategic alternatives.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">If
we are unable to effectively manage the strategic review process, our business, financial condition, liquidity and results of operations
could be adversely affected (see <I>Significant Developments&mdash;Plan of Reorganization</I> above).</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>


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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt">If <FONT STYLE="letter-spacing: -0.05pt">we
reorganize as </FONT>an <FONT STYLE="letter-spacing: -0.05pt">operating company, we will likely not continue to qualify as</FONT>
a <FONT STYLE="letter-spacing: -0.05pt">RIC under the Code.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Pursuant
to our Plan of Reorganization, if we were to reorganize as an operating company, we may lose our status as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC.
If we fail to qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">will</FONT>
be <FONT STYLE="letter-spacing: -0.05pt">subject to corporate income tax, which would substantially reduce the amount of income
</FONT>we <FONT STYLE="letter-spacing: -0.05pt">might otherwise distribute to our shareholders (see <I>Significant Developments&mdash;Plan
of Reorganization</I> above).</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">If
we reorganize as</FONT> an <FONT STYLE="letter-spacing: -0.05pt">operating company or a permanent capital vehicle, we will not
continue to operate as</FONT> a <FONT STYLE="letter-spacing: -0.05pt">BDC.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
have elected to be classified as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC under the 1940 Act. In connection with our
announcement on May 14, 2014 to effect</FONT> a <FONT STYLE="letter-spacing: -0.05pt">Plan of Reorganization, if we effect </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">reorganization of the Fund into an operating company or a permanent capital vehicle, we will
seek to terminate our BDC classification. On November 19, 2019, holders of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">majority
of the outstanding common stock of the Fund approved our cessation as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC under
the 1940 Act and authorized our Board to cause the Fund&rsquo;s withdrawal</FONT> of <FONT STYLE="letter-spacing: -0.05pt">its
election to be </FONT><FONT STYLE="letter-spacing: -0.1pt">classified</FONT> <FONT STYLE="letter-spacing: -0.05pt">as </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">BDC, effective as of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">date designated by the
Board and our Chief Executive Officer, but no later than</FONT> March 31, 2020, although we expect that our shareholders will grant
future such authorizations. <FONT STYLE="letter-spacing: -0.05pt">Nevertheless,</FONT> if we <FONT STYLE="letter-spacing: -0.05pt">were
to terminate our election to</FONT> be <FONT STYLE="letter-spacing: -0.05pt">classified </FONT>as a <FONT STYLE="letter-spacing: -0.05pt">BDC
and were still determined by the SEC </FONT>to <FONT STYLE="letter-spacing: -0.05pt">constitute an &ldquo;investment company,&rdquo;
we would be subject to significantly greater regulatory requirements and constraints than under those which </FONT>we <FONT STYLE="letter-spacing: -0.05pt">presently
operate, the result of which could have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material adverse effect on our results and
financial condition.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt">If <FONT STYLE="letter-spacing: -0.05pt">we
reorganize as </FONT>an <FONT STYLE="letter-spacing: -0.05pt">operating company or a permanent capital vehicle, we may not </FONT>be
<FONT STYLE="letter-spacing: -0.05pt">able to utilize our capital losses.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
of December 31, 2019, we have incurred cumulative capital losses </FONT>of $18.5 <FONT STYLE="letter-spacing: -0.05pt">million,
which can </FONT>be <FONT STYLE="letter-spacing: -0.05pt">carried over indefinitely. Pursuant</FONT> to <FONT STYLE="letter-spacing: -0.05pt">the
Plan of Reorganization announced on May 14, 2014, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">may reorganize as an operating
company, and our Board has subsequently approved the transformation of Equus into a permanent capital vehicle. If we reorganize
as an operating company or a permanent capital vehicle, we may lose </FONT>our <FONT STYLE="letter-spacing: -0.05pt">ability to
offset future income against our cumulative capital losses, including capital losses that would otherwise continue past 2019. If
we reorganized as an operating company or a permanent capital vehicle and were unable to offset future income against these </FONT>capital
<FONT STYLE="letter-spacing: -0.05pt">losses, </FONT>the <FONT STYLE="letter-spacing: -0.05pt">result could have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material
adverse effect on our future operating results and our financial condition.</FONT></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">If
we reorganize as</FONT> an <FONT STYLE="letter-spacing: -0.05pt">operating company or a permanent capital vehicle, our stockholders
will no longer have certain protections under the 1940 Act.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">If
we withdraw the Fund&rsquo;s election to be treated as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC, Equus will</FONT> no
<FONT STYLE="letter-spacing: -0.05pt">longer</FONT> be <FONT STYLE="letter-spacing: -0.05pt">subject to regulation under the 1940
Act, which is designed to protect the interests of investors in investment companies. Specifically, our stockholders would no longer
have the following protections of the 1940 Act:</FONT></P>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 50.3pt"></TD><TD STYLE="width: 45pt">&bull;</TD><TD STYLE="padding-right: 13.7pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Leverage Limits</I>. We would </FONT>no longer <FONT STYLE="letter-spacing: -0.05pt">be
subject to the requirement in Section </FONT>61 <FONT STYLE="letter-spacing: -0.05pt">of the 1940 Act that we maintain</FONT> a
<FONT STYLE="letter-spacing: -0.05pt">ratio of assets </FONT>to <FONT STYLE="letter-spacing: -0.05pt">senior securities (such as
senior debt</FONT> or <FONT STYLE="letter-spacing: -0.05pt">preferred stock) of at least 200% and we would not be limited</FONT>
by <FONT STYLE="letter-spacing: -0.05pt">statute </FONT>or <FONT STYLE="letter-spacing: -0.05pt">regulation</FONT> to <FONT STYLE="letter-spacing: -0.05pt">the
amount of leverage</FONT> we <FONT STYLE="letter-spacing: -0.05pt">could incur.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.3pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 50.3pt"></TD><TD STYLE="width: 45pt">&bull;</TD><TD STYLE="padding-right: 43.55pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Range of Investments</I>. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">would
no longer </FONT>be <FONT STYLE="letter-spacing: -0.05pt">prohibited from investing in certain types </FONT>of <FONT STYLE="letter-spacing: -0.05pt">companies,
such as brokerage firms, insurance, companies, and investment companies.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/99% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 50.3pt"></TD><TD STYLE="width: 45pt">&bull;</TD><TD STYLE="padding-right: 6.95pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Changes</I></FONT><I> in <FONT STYLE="letter-spacing: -0.05pt">Financial
Reporting</FONT></I><FONT STYLE="letter-spacing: -0.05pt">. While the conversion </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Equus
into an operating company will enable us to consolidate the financial results of entities we control, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">change
in our method of accounting could also reduce the reported value of our investments </FONT>in <FONT STYLE="letter-spacing: -0.05pt">controlled
privately-held companies by eliminating our ability</FONT> to <FONT STYLE="letter-spacing: -0.05pt">report an increase</FONT> in
<FONT STYLE="letter-spacing: -0.05pt">the fair value of these holdings.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/99% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 50.3pt"></TD><TD STYLE="width: 45pt">&bull;</TD><TD STYLE="padding-right: 13.7pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Protection of Directors and Officers</I>. We would</FONT>
no <FONT STYLE="letter-spacing: -0.05pt">longer </FONT>be <FONT STYLE="letter-spacing: -0.05pt">prohibited from protecting any
director</FONT> or <FONT STYLE="letter-spacing: -0.05pt">officer against any liability to the Fund or our stockholders arising
from willful malfeasance, bad faith, gross negligence, or reckless disregard </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
duties involved in the conduct of that person&rsquo;s office, although there are similar limitations under Delaware law, our Certificate
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">Incorporation, and our Bylaws that would still apply.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.3pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 50.3pt"></TD><TD STYLE="width: 45pt">&bull;</TD><TD STYLE="padding-right: 9.45pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Fidelity Bond</I>. We would no longer be required to
provide and maintain an investment company blanket bond issued</FONT> by a <FONT STYLE="letter-spacing: -0.05pt">reputable fidelity
insurance company to protect us against larceny and embezzlement.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.15pt 0 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/99% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 50.3pt"></TD><TD STYLE="width: 45pt">&bull;</TD><TD STYLE="padding-right: 6.95pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Director Independence</I>. We would no longer be required
to ensure that </FONT>a <FONT STYLE="letter-spacing: -0.05pt">majority</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our directors
are persons who </FONT>are <FONT STYLE="letter-spacing: -0.05pt">not &ldquo;interested persons,&rdquo; as that term is defined
</FONT>in <FONT STYLE="letter-spacing: -0.05pt">the 1940 Act, and certain persons, such as investment bankers, that would be prevented
from serving on our Board if</FONT> we <FONT STYLE="letter-spacing: -0.05pt">were </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC.
However, assuming we</FONT> can comply with the <FONT STYLE="letter-spacing: -0.05pt">NYSE&rsquo;s listing standards for operating
companies, we will remain subject to NYSE listing standards that require the majority of directors of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">listed
company and all members of its compensation, audit and nominating committees to be &ldquo;independent&rdquo; as defined under NYSE
rules.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 50.3pt"></TD><TD STYLE="width: 45pt">&bull;</TD><TD STYLE="padding-right: 16.05pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Affiliate Transactions</I>. We would no longer be subject
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">provisions of the 1940 Act regulating transactions between BDCs and certain affiliates,
although we would still be subject </FONT>to <FONT STYLE="letter-spacing: -0.05pt">conflict</FONT> of interest <FONT STYLE="letter-spacing: -0.05pt">rules
and governance procedures that exist under Delaware law and NYSE rules.</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.5pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 50.3pt"></TD><TD STYLE="width: 45pt">&bull;</TD><TD STYLE="padding-right: 16.05pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Share Issuances</I>. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">would
no longer </FONT>be <FONT STYLE="letter-spacing: -0.05pt">subject to provisions of the 1940 </FONT>Act <FONT STYLE="letter-spacing: -0.05pt">restricting
our ability</FONT> to <FONT STYLE="letter-spacing: -0.05pt">issue shares below NAV or in exchange for services, nor would we be
restricted in issuing more than one class of equity securities</FONT> or <FONT STYLE="letter-spacing: -0.05pt">instruments that
could be converted into other classes of equity securities.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 50.3pt"></TD><TD STYLE="width: 45pt">&bull;</TD><TD STYLE="padding-right: 16.05pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Share Repurchases</I>. We would no longer be restricted
under the 1940 Act in our ability</FONT> to <FONT STYLE="letter-spacing: -0.05pt">repurchase shares from our stockholders, and
would instead be subject only to NYSE rules and Delaware corporate law requirements for </FONT><FONT STYLE="letter-spacing: -0.1pt">such</FONT>
<FONT STYLE="letter-spacing: -0.05pt">repurchases.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.3pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 50.3pt"></TD><TD STYLE="width: 45pt">&bull;</TD><TD STYLE="padding-right: 34.35pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Change of Business</I>. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">would
be able to change the nature of our business and fundamental investment policies without having to obtain the approval </FONT>of
<FONT STYLE="letter-spacing: -0.05pt">our stockholders.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.3pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 50.3pt"></TD><TD STYLE="width: 45pt">&bull;</TD><TD STYLE="padding-right: 34.35pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Director and Officer Incentives</I>. We would</FONT>
no <FONT STYLE="letter-spacing: -0.05pt">longer require exemptive relief from the SEC before implementing incentive compensation
plans for our key executives and non-executive directors.</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><B><A NAME="a_004"></A>Item 1B. <I>Unresolved
Staff Comments</I></B></FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">None.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><A NAME="a_005"></A><FONT STYLE="letter-spacing: -0.05pt"><B>Item 2. <I>Properties</I></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
do not own any real estate </FONT>or <FONT STYLE="letter-spacing: -0.05pt">other physical properties. Our principal executive offices
are located at 700 Louisiana St. 48<FONT STYLE="font-size: 7pt">th</FONT> Floor, Houston, Texas 77002. Should we remain a BDC and
not consummate a Consolidation, w</FONT>e <FONT STYLE="letter-spacing: -0.05pt">believe that these leased office facilities are
suitable and adequate for our business</FONT> as <FONT STYLE="letter-spacing: -0.05pt">it </FONT>is <FONT STYLE="letter-spacing: -0.05pt">contemplated
to be conducted.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><A NAME="a_006"></A><FONT STYLE="letter-spacing: -0.05pt"><B>Item 3. <I>Legal
Proceedings</I></B></FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8.2pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><B>Shareholder
Complaint</B>&mdash; </FONT>On <FONT STYLE="letter-spacing: -0.05pt">November 16, 2016, Samuel Zalmanoff filed</FONT> a <FONT STYLE="letter-spacing: -0.05pt">lawsuit
against the Fund and members </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the Board </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Directors
in the Court of Chancery in the State </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Delaware. The lawsuit was filed </FONT>in
<FONT STYLE="letter-spacing: -0.05pt">connection with the Fund&rsquo;s 2016 Equity Incentive Plan (&ldquo;Incentive Plan&rdquo;)
which was adopted </FONT>by <FONT STYLE="letter-spacing: -0.05pt">the Board of Directors on April 15, 2016, approved by </FONT>the
<FONT STYLE="letter-spacing: -0.05pt">Equus shareholders on June 13, 2016, and approved, with certain standard exceptions, by the
Securities and Exchange Commission</FONT> on <FONT STYLE="letter-spacing: -0.05pt">January 10, 2017. Mr. Zalmanoff&rsquo;s complaint,
which purported to be on behalf</FONT> of <FONT STYLE="letter-spacing: -0.05pt">all non-affiliate Equus shareholders entitled </FONT>to
<FONT STYLE="letter-spacing: -0.05pt">vote for the Incentive Plan, alleged </FONT>a <FONT STYLE="letter-spacing: -0.05pt">breach
by the Board </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Directors of its fiduciary duties </FONT>of <FONT STYLE="letter-spacing: -0.05pt">disclosure
</FONT>in <FONT STYLE="letter-spacing: -0.05pt">connection with the Incentive Plan, and sought an order from the court: (i) enjoining
implementation of the Incentive Plan, (ii) requiring the Fund </FONT>to <FONT STYLE="letter-spacing: -0.05pt">revise its disclosures
relating to the Incentive Plan, and (iii) for an award of costs, attorneys&rsquo; fees, and expenses. We believe that this lawsuit,
and the allegations included therein, was without merit. Accordingly, on September 22, 2017, we filed </FONT>a <FONT STYLE="letter-spacing: -0.05pt">motion
for summary judgment regarding this action which </FONT>was <FONT STYLE="letter-spacing: -0.05pt">granted by the Chancery Court
on November 13, 2018. Mr. Zalmanoff appealed the Chancery Court ruling to the Delaware Supreme Court and, on May 16, 2019, the
Delaware Supreme Court affirmed the Chancery Court decision and terminated the proceedings.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">From
time to time, the Fund is also </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">material effect upon the Fund&rsquo;s financial condition or results </FONT>of <FONT STYLE="letter-spacing: -0.05pt">operations.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><B><A NAME="a_007"></A>Item 4. <I>Mine
Safety Disclosures</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Not applicable.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><A NAME="a_008"></A>PART II</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="font-style: normal; letter-spacing: -0.05pt"><A NAME="a_009"></A>Item
5.</FONT> <FONT STYLE="letter-spacing: -0.05pt">Market for Registrant&rsquo;s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity </FONT><FONT STYLE="letter-spacing: -0.1pt">Securitie<FONT STYLE="font-style: normal; font-weight: normal">s</FONT></FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 34.35pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
common stock is listed on the NYSE under the symbol &ldquo;EQS&rdquo;. We had approximately 2,300 stockholders as of December 31,
2019, 671 of whom were registered holders. Registered holders do not include those stockholders whose stock </FONT>has been <FONT STYLE="letter-spacing: -0.05pt">issued
in street name. As of December 31, 2019, our net asset value per share was $3.40.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
following table reflects the high and low closing sales prices per share of our common stock</FONT> on <FONT STYLE="letter-spacing: -0.05pt">the
NYSE, and net asset value (&ldquo;NAV&rdquo;) per share for each of the three years ended December 31, 2019, by
quarter:</FONT></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0.35pt 0 0"></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0.45pt 0 0; color: Red"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font-size: 10pt">&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">2019</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">2018</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">2017</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="padding-bottom: 1pt; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom">Q1</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom">Q2</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom">Q3</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom">Q4</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom">Q1</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom">Q2</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom">Q3</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom">Q4</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom">Q1</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom">Q2</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom">Q3</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; font-weight: bold; text-align: center; vertical-align: bottom">Q4</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; text-align: left; vertical-align: bottom">High</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">1.98</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">1.86</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">1.76</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">1.83</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.45</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.42</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.35</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.20</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 5%; text-align: right">2.49</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 4%; text-align: right">2.97</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 4%; text-align: right">2.44</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 4%; text-align: right">2.44</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;</TD><TD STYLE="text-align: left; vertical-align: bottom">Low</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.79</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.60</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.55</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1.50</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.34</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.34</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">1.89</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.00</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.25</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.24</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.29</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: left; vertical-align: bottom">NAV</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.44</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.55</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.63</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.40</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.20</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.26</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.45</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.22</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.06</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.12</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">3.18</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 9pt Sans-Serif; margin: 0.45pt 0 0; color: Red"><B></B></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0.45pt 0 0; color: Red"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0.45pt 0 0; color: Red"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 31.15pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">are required </FONT>to <FONT STYLE="letter-spacing: -0.05pt">distribute
to our stockholders, in</FONT> a <FONT STYLE="letter-spacing: -0.05pt">timely manner, at least 90% of our taxable net investment
income each year. If we do not distribute, in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">timely manner, 98.2% of our taxable
</FONT>net <FONT STYLE="letter-spacing: -0.05pt">capital gains and 90% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">4% non-deductible federal excise tax </FONT>on <FONT STYLE="letter-spacing: -0.05pt">certain
undistributed income </FONT>of <FONT STYLE="letter-spacing: -0.05pt">regulated investment companies. Under the 1940 Act, </FONT>we
are <FONT STYLE="letter-spacing: -0.05pt">not permitted to pay dividends </FONT>to <FONT STYLE="letter-spacing: -0.05pt">stockholders
unless we meet certain asset coverage requirements. If taxable net investment income is retained, we will</FONT> be <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>or <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">credit against their
own federal income tax liabilities. Stockholders will also be entitled</FONT> to <FONT STYLE="letter-spacing: -0.05pt">increase
the adjusted tax basis of their fund shares by the difference between their undistributed capital gains and their tax credit.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 17.75pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
invest </FONT>in <FONT STYLE="letter-spacing: -0.05pt">companies that are believed to have</FONT> a <FONT STYLE="letter-spacing: -0.05pt">high
potential for capital appreciation, and we intend to realize the majority</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our profits
upon the sale </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our investments in portfolio companies. Consequently, most of the
companies in which we invest do not have established policies of paying annual dividends. However, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portion
of the investments in portfolio securities held</FONT> by <FONT STYLE="letter-spacing: -0.05pt">the Fund consists of interest-bearing
subordinated debt securities </FONT>or <FONT STYLE="letter-spacing: -0.05pt">dividend-paying preferred stock.</FONT></P>

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

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

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

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

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

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

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

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

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

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


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    <!-- Field: /Page -->

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><B><A NAME="a_010"></A>Item 6. <I>Selected
Financial Data</I></B></FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt">The <FONT STYLE="letter-spacing: -0.05pt">following </FONT>is
a <FONT STYLE="letter-spacing: -0.05pt">summary</FONT> of <FONT STYLE="letter-spacing: -0.05pt">selected financial data
and per share data of the Fund for each of the five years ended December 31, 2019 (in thousands, except per share
data):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 9pt 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">2019</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2018</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2017</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2016</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">2015</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</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: 40%; text-align: left">Total investment income</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">351</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">480</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">560</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">748</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">446</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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">Net investment loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,391</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,555</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,014</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,451</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,351</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: 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">Net realized (loss) gain of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,736</TD><TD STYLE="text-align: left">)</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</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(13</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,483</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: 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">Net change in unrealized appreciation</TD><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">7,790</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,812</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,236</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,347</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,755</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net 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 STYLE="text-align: left">&nbsp;&nbsp;&nbsp;of portfolio securities - related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">510</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,215</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">954</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">549</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(814</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: 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">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: White">
    <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">2,173</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(829</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,432</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,107</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&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="text-align: left">Total assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,086</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,941</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,204</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">73,146</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">52,530</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="text-align: left">Net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">45,989</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,495</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,007</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,740</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">37,308</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="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">(5,449</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,263</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,710</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20,069</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,338</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="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">13,518</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,518</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,518</TD><TD STYLE="text-align: left">&nbsp;</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">12,674</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>Weighted average shares outstanding, basic</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,518</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,518</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,435</TD><TD STYLE="text-align: left">&nbsp;</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">12,674</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 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 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: center; vertical-align: bottom">2019</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: center; vertical-align: bottom">2018</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: center; vertical-align: bottom">2017</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: center; vertical-align: bottom">2016</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: center; vertical-align: bottom">2015</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net investment loss</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">$</TD><TD STYLE="text-align: right">(0.27</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.30</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.19</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">(0.19</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net realized loss of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.20</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.20</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net change in unrealized appreciation</TD><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">0.58</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.27</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.24</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.62</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.47</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 11pt; text-align: left">Increase (decrease) in net assets resulting from capital transactions</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">0.04</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.13</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;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: rgb(204,238,255)">
    <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">0.18</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">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.19</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.43</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.08</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">3.40</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.22</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.18</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.37</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.94</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



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</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0 5.3pt"><FONT STYLE="font-style: normal; letter-spacing: -0.05pt"><A NAME="a_011"></A>Item
7.</FONT> <FONT STYLE="letter-spacing: -0.05pt">Management&rsquo;s Discussion and Analysis of Financial Condition and Results of
Operations</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><B>Overview</B></FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Equus
is </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC that provides financing solutions for privately held middle market and small
capitalization companies. We began operations </FONT>in <FONT STYLE="letter-spacing: -0.05pt">1983 and have been </FONT>a <FONT STYLE="letter-spacing: -0.05pt">publicly
traded closed-end fund since 1991. Our investment objective is to seek the highest </FONT>total <FONT STYLE="letter-spacing: -0.05pt">return,
consisting of capital appreciation and current income. On May 15, 2014, we announced that the Fund had adopted</FONT> a <FONT STYLE="letter-spacing: -0.05pt">Plan
of Reorganization</FONT> that would, if <FONT STYLE="letter-spacing: -0.05pt">effected, transform Equus into an operating company.
Our Board has also approved the possible transformation of Equus into a permanent capital vehicle. On November 19, 2019, our shareholders
authorized our Board </FONT>to <FONT STYLE="letter-spacing: -0.05pt">withdraw our BDC election at any time before March 31, 2020.
Nevertheless, we will not withdraw this election unless and until we have entered into </FONT>a <FONT STYLE="letter-spacing: -0.05pt">definitive
agreement </FONT>to <FONT STYLE="letter-spacing: -0.05pt">effect </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation or
the transformation of Equus into a permanent capital vehicle. Further, we will require </FONT>a <FONT STYLE="letter-spacing: -0.05pt">subsequent
affirmative vote from holders of</FONT> a <FONT STYLE="letter-spacing: -0.05pt">majority of our outstanding voting shares to enter
into any such definitive agreement or change the nature of our business. See <I>Significant Developments </I></FONT><I>&ndash;
<FONT STYLE="letter-spacing: -0.05pt">Plan of Reorganization and Share Exchange with MVC Capital </FONT></I>and <FONT STYLE="letter-spacing: -0.05pt">&ndash;
<I>Authorization to Withdraw BDC Election</I> above.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><I>&nbsp;</I></FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 32.65pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC, we are required </FONT>to <FONT STYLE="letter-spacing: -0.05pt">comply with
certain regulatory requirements. For instance, we generally have to invest at least 70%</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the
Fund&rsquo;s total assets in &ldquo;qualifying assets,&rdquo; including securities of private U.S. companies, certain public U.S.
companies with</FONT> a <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC
under Subchapter</FONT> M of <FONT STYLE="letter-spacing: -0.05pt">the Code. To qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC,
we must meet certain source of income and asset diversification requirements. If </FONT>we <FONT STYLE="letter-spacing: -0.05pt">comply
with the provisions </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Subchapter </FONT>M, <FONT STYLE="letter-spacing: -0.05pt">the
Fund generally does not have </FONT>to <FONT STYLE="letter-spacing: -0.05pt">pay corporate-level income taxes on any income that
distributed to our stockholders.</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.5pt 0 5.05pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.5pt 0 5.05pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Investment
Income</I>. We generate investment income from interest payable </FONT>on <FONT STYLE="letter-spacing: -0.05pt">the debt securities
that the Fund holds, dividends received</FONT> on <FONT STYLE="letter-spacing: -0.05pt">equity interests in our portfolio companies
and capital gains, if any, realized upon sales of equity and, to </FONT>a <FONT STYLE="letter-spacing: -0.05pt">lesser extent,
debt securities in the investment portfolio. Our equity investments may include shares of common and preferred </FONT><FONT STYLE="letter-spacing: -0.1pt">stock,</FONT>
<FONT STYLE="letter-spacing: -0.05pt">membership interests </FONT>in <FONT STYLE="letter-spacing: -0.05pt">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, </FONT>if <FONT STYLE="letter-spacing: -0.05pt">any, vary by investment.
Our debt investments in portfolio companies may</FONT> be in <FONT STYLE="letter-spacing: -0.05pt">the form of senior</FONT> or
<FONT STYLE="letter-spacing: -0.05pt">subordinated loans and may be unsecured </FONT>or have a <FONT STYLE="letter-spacing: -0.05pt">first</FONT>
or second <FONT STYLE="letter-spacing: -0.05pt">lien on some or all of the assets </FONT>of the <FONT STYLE="letter-spacing: -0.05pt">borrower.
Our loans typically have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>by <FONT STYLE="letter-spacing: -0.05pt">the Fund provide that </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio
company </FONT>may <FONT STYLE="letter-spacing: -0.05pt">elect to pay interest in cash or provide that discount interest may accrete
in the form </FONT>of <FONT STYLE="letter-spacing: -0.05pt">original issue discount</FONT> or <FONT STYLE="letter-spacing: -0.05pt">payment-in-kind
(PIK) over the life of the notes</FONT> by <FONT STYLE="letter-spacing: -0.05pt">adding unpaid interest amounts to the principal
balance. Amortization </FONT>of <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>on <FONT STYLE="letter-spacing: -0.05pt">investments
</FONT>in <FONT STYLE="letter-spacing: -0.05pt">short-term marketable securities. From time to time, we generate income in the
form of commitment, origination, structuring, and extension fees </FONT>in <FONT STYLE="letter-spacing: -0.05pt">connection with
our investments. We recognize all such fees when earned.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Expenses.</I>
Currently, our primary operating expenses include director fees and expenses, professional fees, compensation </FONT><FONT STYLE="letter-spacing: -0.1pt">expense,</FONT>
<FONT STYLE="letter-spacing: -0.05pt">general and administrative fees, and professional fees incurred in connection with our Plan
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">Reorganization. During 2019 and 2018, we did not incur any non-recurring expenses.
During 2017, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">incurred non-recurring expenses of $2.5 million related to transaction
costs described under <I>Significant Developments</I></FONT><I> &ndash; <FONT STYLE="letter-spacing: -0.05pt">Agreement to Acquire
Portfolio Company of MVC </FONT></I><FONT STYLE="letter-spacing: -0.05pt">above.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Non-Operating
Subsidiary.</I> We have established Equus Total Return (Canada) Inc. as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">wholly-owned
subsidiary to facilitate payments</FONT> to <FONT STYLE="letter-spacing: -0.05pt">Canadian personnel and contractors who provide
services to the Fund. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">consider Equus Total Return (Canada) </FONT>Inc. a <FONT STYLE="letter-spacing: -0.05pt">disregarded
entity for accounting purposes, inasmuch as it does not have active operations.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Operating
Activities.</I> We use cash to make new investments and follow-on investments in our existing portfolio companies. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">record
these investments at cost on the applicable trade date. Realized gains </FONT>or <FONT STYLE="letter-spacing: -0.05pt">losses are
computed using the specific </FONT><FONT STYLE="letter-spacing: -0.1pt">identification</FONT> <FONT STYLE="letter-spacing: -0.05pt">method.
On an ongoing basis, we carry our investments in our financial statements at fair value, as determined by our board</FONT> of <FONT STYLE="letter-spacing: -0.05pt">directors.
</FONT>See <FONT STYLE="letter-spacing: -0.05pt">&ldquo;<I>Critical Accounting Policies </I></FONT><I>&ndash; <FONT STYLE="letter-spacing: -0.05pt">Valuation
of Investments</FONT></I><FONT STYLE="letter-spacing: -0.05pt">&rdquo; below. As of December 31, 2019, we had invested 85.4% of
our assets in securities of portfolio companies that constituted qualifying investments under the 1940 Act. </FONT>At <FONT STYLE="letter-spacing: -0.05pt">that
time, we had invested 65.3% by value </FONT>in <FONT STYLE="letter-spacing: -0.05pt">shares of common stock, 21.7% in membership
interests in limited liability companies, and 2.0% in various debt instruments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Commitments.</I>
Under certain circumstances, we make follow-on investments in some </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our portfolio
companies. As of December 31, 2019, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">had no outstanding commitments </FONT>to <FONT STYLE="letter-spacing: -0.05pt">our
portfolio company investments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Financing
Activities.</I> From time to time, we </FONT>use <FONT STYLE="letter-spacing: -0.05pt">leverage </FONT>to <FONT STYLE="letter-spacing: -0.05pt">finance</FONT>
a <FONT STYLE="letter-spacing: -0.05pt">portion of our investments. We then</FONT> <FONT STYLE="letter-spacing: -0.1pt">repay</FONT>
<FONT STYLE="letter-spacing: -0.05pt">such debt from the </FONT><FONT STYLE="letter-spacing: -0.1pt">sale</FONT> of <FONT STYLE="letter-spacing: -0.05pt">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</FONT> to <FONT STYLE="letter-spacing: -0.05pt">certain restrictions, including an overall limitation
on the amount</FONT> of <FONT STYLE="letter-spacing: -0.05pt">outstanding debt, or leverage, relative </FONT>to <FONT STYLE="letter-spacing: -0.05pt">equity
of 2:1. Because </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the nature and size of our portfolio investments, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">periodically
borrow funds to make qualifying investments in order to maintain our qualification as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC.
During 2019 and 2018, we borrowed such funds by accessing </FONT>a <FONT STYLE="letter-spacing: -0.05pt">margin account with </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">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.</FONT> We <FONT STYLE="letter-spacing: -0.05pt">refer</FONT> to <FONT STYLE="letter-spacing: -0.05pt">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. </FONT>If, <FONT STYLE="letter-spacing: -0.05pt">in the future, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">cannot
borrow funds to make such qualifying investments at the end of any future quarter, we may not qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC
and would become subject</FONT> to <FONT STYLE="letter-spacing: -0.05pt">corporate-level income tax on our net investment income
and realized capital gains,</FONT> if <FONT STYLE="letter-spacing: -0.05pt">any. In addition, our distributions to stockholders
would be taxable as ordinary dividends </FONT>to <FONT STYLE="letter-spacing: -0.05pt">the extent paid from earnings and profits.
See &ldquo;<I>Federal Income Tax Considerations</I>.&rdquo;</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Distributions</I>.
So </FONT>long <FONT STYLE="letter-spacing: -0.05pt">as we remain </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC, we will continue
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">pay out net investment income and/or realized capital gains,</FONT> if any, on
<FONT STYLE="letter-spacing: -0.05pt">an annual basis as required under the 1940 Act.</FONT></P>

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Possible
Share Repurchase.</I> As</FONT> a <FONT STYLE="letter-spacing: -0.05pt">closed-end BDC,</FONT> our <FONT STYLE="letter-spacing: -0.05pt">shares
of common stock are not redeemable at the option of stockholders, and our shares currently trade at </FONT>a <FONT STYLE="letter-spacing: -0.05pt">discount
to their net asset value. Our Board has determined that it would </FONT>be in <FONT STYLE="letter-spacing: -0.05pt">the best interests
of our stockholders to reduce or eliminate this market value discount. Accordingly, we have been authorized to, and may from time
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">time, repurchase shares of our outstanding common stock (including by means of
tender offers or privately negotiated transactions) in an effort to reduce </FONT>or <FONT STYLE="letter-spacing: -0.05pt">eliminate
this market discount or</FONT> to <FONT STYLE="letter-spacing: -0.05pt">increase the net asset value of our shares. We are not
required to undertake, and we have not previously undertaken, any such share repurchases, nor </FONT>do <FONT STYLE="letter-spacing: -0.05pt">we
further anticipate taking any such action in 2020.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">2016 Equity
Incentive Plan</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">On
June 13, 2016, our shareholders approved the adoption of our 2016 Equity Incentive Plan (&ldquo;Incentive Plan&rdquo;). On January
10, 2017, the SEC issued an order approving the Incentive Plan and certain awards intended to be made thereunder. The Incentive
Plan is intended to promote the interests of the Fund by encouraging officers, employees, and directors </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
Fund and its affiliates to acquire or increase their equity interest in the Fund and to provide </FONT>a <FONT STYLE="letter-spacing: -0.05pt">means
whereby they may develop </FONT>a <FONT STYLE="letter-spacing: -0.05pt">proprietary interest in the development and financial success</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">the Fund, </FONT>to <FONT STYLE="letter-spacing: -0.05pt">encourage them to remain with
and devote their best efforts to the business of the Fund, thereby advancing the interests of the Fund and its stockholders. The
Incentive Plan </FONT>is <FONT STYLE="letter-spacing: -0.05pt">also intended to enhance the ability of the Fund and its affiliates
to attract </FONT>and <FONT STYLE="letter-spacing: -0.05pt">retain the services of individuals who are essential for the growth
and profitability</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the Fund. The Incentive Plan permits the award </FONT>of <FONT STYLE="letter-spacing: -0.05pt">restricted</FONT>
<FONT STYLE="letter-spacing: -0.1pt">stock</FONT> <FONT STYLE="letter-spacing: -0.05pt">as well as common stock purchase options.
The maximum number of shares </FONT>of <FONT STYLE="letter-spacing: -0.05pt">common stock that are subject to awards granted under
the Incentive Plan is 2,434,728 shares. The term of the Incentive Plan will expire on June 13, 2026. On March 17, 2017, we granted
awards of restricted stock under the Plan to certain</FONT> of our <FONT STYLE="letter-spacing: -0.05pt">directors and executive
officers in the aggregate amount</FONT> of <FONT STYLE="letter-spacing: -0.05pt">844,500 shares. The awards are each subject to
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">vesting requirement over </FONT>a <FONT STYLE="letter-spacing: -0.05pt">3-year period
unless</FONT> the <FONT STYLE="letter-spacing: -0.05pt">recipient</FONT> thereof is <FONT STYLE="letter-spacing: -0.05pt">terminated
</FONT>or <FONT STYLE="letter-spacing: -0.05pt">removed from their position as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">director
or executive officer without &ldquo;cause&rdquo;, or as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result of constructive termination,
as such terms are defined</FONT> in <FONT STYLE="letter-spacing: -0.05pt">the respective award agreements entered into by each
of the recipients and the Fund. We account for share-based compensation using the fair value method, as prescribed</FONT> by <FONT STYLE="letter-spacing: -0.05pt">ASC
718, Compensation&mdash;Stock Compensation. Accordingly, for restricted stock awards, we measure the grant date fair value based
upon the market price of our common stock on the date of the grant and amortize the fair value of </FONT>the <FONT STYLE="letter-spacing: -0.05pt">awards
as share-based compensation expense over the requisite service period, which is generally the vesting term. In connection with
these awards,</FONT> we recorded <FONT STYLE="letter-spacing: -0.05pt">compensation expense </FONT>of <FONT STYLE="letter-spacing: -0.05pt">$0.3
million, $0.4 million and $1.1 million respectively, for the years ended December 31, 2019, 2018, and
2017.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Critical Accounting
Policies and Estimates</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.65pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
follow the accounting and reporting guidance in FASB Accounting Standards Codification Topic 946 <I>&ldquo;Financial Services </I></FONT><I>&ndash;
<FONT STYLE="letter-spacing: -0.05pt">Investment Companies</FONT></I><FONT STYLE="letter-spacing: -0.05pt">.&rdquo; Our financial
statements are based </FONT>on <FONT STYLE="letter-spacing: -0.05pt">the selection and application of significant accounting policies,
which require management to make significant estimates and assumptions. We </FONT>believe that the <FONT STYLE="letter-spacing: -0.05pt">following
are some </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the more critical judgment areas in the application of our accounting
policies that currently affect our financial condition and results of operations.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Valuation
of Investments</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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 </FONT>has <FONT STYLE="letter-spacing: -0.05pt">approved
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">multi-step valuation process each quarter, as described below:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.1pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="letter-spacing: -0.05pt">1.</FONT></TD><TD><FONT STYLE="letter-spacing: -0.05pt">Each portfolio company</FONT> or <FONT STYLE="letter-spacing: -0.05pt">investment is
reviewed by our investment professionals;</FONT></TD></TR></TABLE>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.1pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="letter-spacing: -0.05pt">2.</FONT></TD><TD STYLE="text-align: justify; padding-right: 27.65pt"><FONT STYLE="letter-spacing: -0.05pt">With respect to investments with</FONT>
a <FONT STYLE="letter-spacing: -0.05pt">fair value exceeding $2.5 million that have been held for more than one year, we engage
independent valuation firms to assist our investment professionals. These independent valuation firms conduct independent valuations
and make their own independent assessments;</FONT></TD></TR></TABLE>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.1pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="letter-spacing: -0.05pt">3.</FONT></TD><TD STYLE="padding-right: 7.65pt"><FONT STYLE="letter-spacing: -0.05pt">Our Management produces </FONT>a <FONT STYLE="letter-spacing: -0.05pt">report
that summarized each of our portfolio investments and recommends </FONT>a <FONT STYLE="letter-spacing: -0.05pt">fair value of each
such investment </FONT>as of <FONT STYLE="letter-spacing: -0.05pt">the date </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
report;</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.1pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="letter-spacing: -0.05pt">4.</FONT></TD><TD STYLE="padding-right: 16.05pt"><FONT STYLE="letter-spacing: -0.05pt">The Audit Committee </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
Board reviews and discusses the preliminary valuation </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our portfolio investments
as recommended by Management in their report and any reports or recommendations of the independent valuation firms, and then approves
and recommends the fair values of our investments so determined to our Board for final approval; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.1pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="letter-spacing: -0.05pt">5.</FONT></TD><TD STYLE="padding-right: 6.6pt"><FONT STYLE="letter-spacing: -0.05pt">The Board discusses valuations and determines the fair value
of each portfolio investment in good faith based </FONT>on <FONT STYLE="letter-spacing: -0.05pt">the input of our Management, the
respective independent valuation firm, as applicable, and the Audit Committee.</FONT></TD></TR></TABLE>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0"></P>


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">During
the first twelve months after an investment</FONT> is <FONT STYLE="letter-spacing: -0.05pt">made, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">rely
</FONT>on <FONT STYLE="letter-spacing: -0.05pt">the original investment amount to determine the fair value unless significant developments
have occurred during this twelve month period which would indicate </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material effect
on the portfolio company (such as results </FONT>of <FONT STYLE="letter-spacing: -0.05pt">operations or changes in general market
conditions).</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Investments
are valued utilizing</FONT> a <FONT STYLE="letter-spacing: -0.05pt">yield analysis, enterprise value (&ldquo;EV&rdquo;) analysis,
net asset value analysis, liquidation analysis, discounted cash flow analysis, </FONT>or a <FONT STYLE="letter-spacing: -0.05pt">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</FONT> a <FONT STYLE="letter-spacing: -0.05pt">portfolio
company is first determined and allocated over the portfolio company&rsquo;s securities in order of their preference relative </FONT>to
<FONT STYLE="letter-spacing: -0.05pt">one</FONT> another <FONT STYLE="letter-spacing: -0.05pt">(i.e., &ldquo;waterfall&rdquo; allocation).
To determine the EV, we typically use</FONT> a <FONT STYLE="letter-spacing: -0.05pt">market multiples approach that considers relevant
and applicable market trading data </FONT>of <FONT STYLE="letter-spacing: -0.05pt">guideline public companies, transaction metrics
from precedent M&amp;A transactions and/or </FONT>a <FONT STYLE="letter-spacing: -0.05pt">discounted cash flow analysis. The net
asset value analysis is used </FONT>to <FONT STYLE="letter-spacing: -0.05pt">derive </FONT>a <FONT STYLE="letter-spacing: -0.05pt">value
of an underlying investment (such as real estate property) by dividing </FONT>a <FONT STYLE="letter-spacing: -0.05pt">relevant
earnings stream </FONT>by <FONT STYLE="letter-spacing: -0.05pt">an appropriate capitalization rate.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">For
this purpose, we consider capitalization </FONT>rates <FONT STYLE="letter-spacing: -0.05pt">for </FONT>similar <FONT STYLE="letter-spacing: -0.05pt">enterprises
as may</FONT> be <FONT STYLE="letter-spacing: -0.05pt">obtained from guideline public companies and/or relevant transactions. The
liquidation analysis </FONT>is <FONT STYLE="letter-spacing: -0.05pt">intended to approximate the net recovery value of an investment
based on, among other things, assumptions regarding liquidation proceeds based on </FONT>a <FONT STYLE="letter-spacing: -0.05pt">hypothetical
liquidation of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio company&rsquo;s assets. The discounted cash flow analysis
uses valuation techniques to convert future cash flows </FONT>or <FONT STYLE="letter-spacing: -0.05pt">earnings to</FONT> a <FONT STYLE="letter-spacing: -0.05pt">range
of fair values from which </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">In
applying these methodologies, additional factors that we consider </FONT>in <FONT STYLE="letter-spacing: -0.05pt">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 </FONT> of <FONT STYLE="letter-spacing: -0.05pt">peer
companies; the principal market; and enterprise values, among other factors. Also, any failure by </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio
company</FONT> to <FONT STYLE="letter-spacing: -0.05pt">achieve its business plan or obtain </FONT>and <FONT STYLE="letter-spacing: -0.05pt">maintain
its financing arrangements could result in increased volatility and result in</FONT> a <FONT STYLE="letter-spacing: -0.05pt">significant
and rapid change</FONT> in <FONT STYLE="letter-spacing: -0.05pt">its value.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
general intent is to hold our loans </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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</FONT> of <FONT STYLE="letter-spacing: -0.05pt">value </FONT>to <FONT STYLE="letter-spacing: -0.05pt">the
debt instrument, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">perform</FONT> a <FONT STYLE="letter-spacing: -0.05pt">yield analysis
assuming </FONT>a <FONT STYLE="letter-spacing: -0.05pt">hypothetical current sale of the security to determine if </FONT>a <FONT STYLE="letter-spacing: -0.05pt">debt
security has been impaired. The yield analysis considers changes in interest rates and changes in leverage levels </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
portfolio company as compared to the market interest rates and leverage levels. Assuming the credit quality</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the
portfolio company remains stable, the Fund will use the value determined by the yield analysis as the fair value for that security
if less than the cost </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the investment.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
will record unrealized depreciation on investments when we determine that the fair value of</FONT> a <FONT STYLE="letter-spacing: -0.05pt">security
is less than its cost basis,</FONT> <FONT STYLE="letter-spacing: -0.1pt">and</FONT> <FONT STYLE="letter-spacing: -0.05pt">will
record unrealized appreciation when </FONT>we <FONT STYLE="letter-spacing: -0.05pt">determine that the fair value is greater than
its cost basis.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Because
of the inherent uncertainty of the valuation of portfolio securities which do not have readily ascertainable market </FONT><FONT STYLE="letter-spacing: -0.1pt">values,</FONT>
<FONT STYLE="letter-spacing: -0.05pt">amounting to $37.0 million and $30.7 million as of December 31, 2019 and 2018, respectively,
our fair value determinations may materially differ from the values that would have been used had </FONT>a <FONT STYLE="letter-spacing: -0.05pt">ready
market existed for the securities. As of December 31, 2019 and December 31, 2018, one of our portfolio investments, MVC Capital,
Inc., was publicly listed on the NYSE with 563,894 common shares and 527,138 common shares, respectively.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
adjust our </FONT>net <FONT STYLE="letter-spacing: -0.05pt">asset value for the changes in the value of our publicly held securities,
</FONT>if <FONT STYLE="letter-spacing: -0.05pt">applicable, and material changes in the value</FONT> of <FONT STYLE="letter-spacing: -0.05pt">private
securities, generally determined on</FONT> a <FONT STYLE="letter-spacing: -0.05pt">quarterly basis or as announced in </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">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>.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Federal
Income Taxes</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">So
long as we maintain our status</FONT> as a <FONT STYLE="letter-spacing: -0.05pt">BDC, we</FONT> intend to <FONT STYLE="letter-spacing: -0.05pt">comply
with the requirements of the Code necessary for us to qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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,</FONT> we did not <FONT STYLE="letter-spacing: -0.05pt">record
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">provision for federal income taxes in our financial statements. As of December 31,
2019, we had </FONT>a <FONT STYLE="letter-spacing: -0.05pt">capital loss carry forward of $18.5 million which may be used to offset
future capital gains. We may borrow money from time to time to maintain our status as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC
under the Code. See &ldquo;<I>Overview</I></FONT><I> &ndash; <FONT STYLE="letter-spacing: -0.05pt">Financing Activities</FONT></I><FONT STYLE="letter-spacing: -0.05pt">&rdquo;
above.</FONT></P>

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

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


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

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Interest
Income Recognition</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.65pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
record interest income, adjusted for amortization </FONT>of <FONT STYLE="letter-spacing: -0.05pt">premium and accretion of discount,
on an accrual basis to the extent that we expect to collect such amounts. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">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</FONT> a <FONT STYLE="letter-spacing: -0.05pt">portion of the current accrual is uncollectible. If
we receive any cash after determining that interest </FONT>is <FONT STYLE="letter-spacing: -0.05pt">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 </FONT><FONT STYLE="letter-spacing: -0.1pt">securities.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Payment
in Kind Interest</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.4pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
have loans </FONT>in <FONT STYLE="letter-spacing: -0.05pt">our portfolio that may pay PIK interest. We add </FONT>PIK <FONT STYLE="letter-spacing: -0.05pt">interest,
</FONT>if <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>our status <FONT STYLE="letter-spacing: -0.05pt">as</FONT>
a <FONT STYLE="letter-spacing: -0.05pt">RIC, we must pay out </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Recent
Accounting</I></FONT><I> <FONT STYLE="letter-spacing: -0.1pt">Pronouncements</FONT></I></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">See the Fund&rsquo;s
Accounting Standards Recently Adopted and Accounting Standards Not Yet Adopted from the disclosure</FONT> set <FONT STYLE="letter-spacing: -0.05pt">forth</FONT>
in <FONT STYLE="letter-spacing: -0.05pt"><I>Footnote</I></FONT><I> 10 <FONT STYLE="letter-spacing: -0.05pt">in the notes to the
Financial Statements</FONT></I><FONT STYLE="letter-spacing: -0.05pt">.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Current
Market Conditions</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 24.55pt"><FONT STYLE="letter-spacing: -0.05pt">Overall
trailing economic conditions in the United States continued to improve, albeit marginally, with GDP up 2.3% for all of 2019, down
from 2.9% in 2018. The introduction of SARS-CoV-2, a pathogen which causes COVID-19 or otherwise known colloquially as the &lsquo;coronavirus,&rsquo;
in late 2019 has significantly affected 2020 GDP estimates worldwide. Preliminary estimates of 2020 U.S. GDP growth generally ranged
from 1.8% to 2.1% but, given the economic disruption caused by the coronavirus, more recent estimates have been revised substantially
downward. Economists surveyed by The Wall Street Journal on March 12, 2020 have now forecasted a GDP contraction of 0.1% for the
U.S. economy during the second quarter of 2020. Similarly, preliminary global GDP growth estimates for 2020 ranged from 2.5% to
3.2%, but have also been revised downward to as low as 1.2% and are expected to decrease further (See <I>Significant Developments
&ndash; Impact of the Coronavirus Generally</I> above). As of February 2020, the U.S. unemployment rate stood at a 50-year low
of 3.5%, but the expected economic dislocation resulting from the coronavirus is expected to increase this figure during 2020,
lessening inflation pressure. The Federal Reserve recently cut its short-term rates by 50 basis points on March 4, 2020, and another
75 basis points on March 16, 2020, and is expected to use other tools to ease further as the anticipated economic impact of the
coronavirus becomes more acute. (Sources: <I>The Conference Board, The Wall Street Journal; Bureau of Economic Analysis, International
Monetary Fund, The Federal Reserve, Kiplinger, Bloomberg, </I>and <I>Morgan Stanley</I>).</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Merger
and acquisition activity in 2019 ($3.9 trillion) was slightly less than 2018 ($4.0 trillion) and at the fourth 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</FONT> on <FONT STYLE="letter-spacing: -0.05pt">acquisitions as part of future growth plans. However, the average
size of M&amp;A transactions</FONT> <FONT STYLE="letter-spacing: -0.1pt">has</FONT> <FONT STYLE="letter-spacing: -0.05pt">continued
to increase to $490 million, while the actual number of such transactions has decreased. Similarly, private debt and equity funds
continued to increase in size, with U.S. debt funds now averaging more than $1.0 billion. Private equity firms engaged in $617
billion worth of transactions in 2019, down somewhat from $800 billion in 2018, as they began to deploy the substantial assets
under management acquired during the past few years. However,</FONT> private equity funds also raised an additional $600 billion
in 2019, and <FONT STYLE="letter-spacing: -0.05pt">the abundance of undeployed capital, currently estimated at $1.5 trillion, has
put upward pressure </FONT>on <FONT STYLE="letter-spacing: -0.05pt">asset prices and constrained expected investment yields. (Source:
<I>PWC</I>, <I>Forbes, Prequin</I>).</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">During
2019, our net asset value increased from $3.22 per share as of December 31, 2018 to $3.40 per share as of December 31, 2019. As
of December 31, 2019, our common stock </FONT>was <FONT STYLE="letter-spacing: -0.05pt">trading at </FONT>a <FONT STYLE="letter-spacing: -0.05pt">46.5%
discount to our </FONT>net <FONT STYLE="letter-spacing: -0.05pt">asset value as compared to 39.1% as of December 31, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Over
the past several years, we have executed certain initiatives to enhance liquidity, achieve </FONT>a <FONT STYLE="letter-spacing: -0.05pt">lower
operational cost structure, provide more assistance to portfolio companies and realize certain of our portfolio investments. Specifically,
we changed the composition </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our Board</FONT> of <FONT STYLE="letter-spacing: -0.05pt">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</FONT> to <FONT STYLE="letter-spacing: -0.05pt">pursue shorter term liquidation
opportunities, pursued non-cash investment opportunities, and sold certain</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our
legacy and underperforming investment holdings. We believe these actions continue </FONT>to <FONT STYLE="letter-spacing: -0.05pt">be
necessary to protect capital and liquidity during the turbulent oil and gas market downturn in order </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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</FONT> and, <FONT STYLE="letter-spacing: -0.05pt">therefore, </FONT>if <FONT STYLE="letter-spacing: -0.05pt">we
remain</FONT> a <FONT STYLE="letter-spacing: -0.1pt">BDC,</FONT> <FONT STYLE="letter-spacing: -0.05pt">we expect to achieve efficiencies
in our cost structure if </FONT>we <FONT STYLE="letter-spacing: -0.05pt">are able</FONT> to <FONT STYLE="letter-spacing: -0.05pt">grow
the Fund.</FONT></P>

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

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


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Liquidity and
Capital Resources</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
generate cash primarily from maturities, sales </FONT>of <FONT STYLE="letter-spacing: -0.05pt">securities and borrowings, as well
as capital gains realized upon the sale</FONT> of <FONT STYLE="letter-spacing: -0.05pt">portfolio investments. We use cash primarily</FONT>
to <FONT STYLE="letter-spacing: -0.05pt">make additional investments, either in new companies or as follow-on investments in the
existing portfolio companies and to pay the dividends </FONT>to <FONT STYLE="letter-spacing: -0.05pt">our stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Because
of the nature and size of the portfolio investments, we may periodically borrow funds </FONT>to <FONT STYLE="letter-spacing: -0.05pt">make
qualifying investments </FONT>to <FONT STYLE="letter-spacing: -0.05pt">maintain our tax status as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC.
We often borrow such funds </FONT>by <FONT STYLE="letter-spacing: -0.05pt">utilizing </FONT>a <FONT STYLE="letter-spacing: -0.05pt">margin
account with </FONT>a <FONT STYLE="letter-spacing: -0.05pt">securities brokerage firm. There </FONT>is <FONT STYLE="letter-spacing: -0.05pt">no
assurance that such arrangement will be available in the future. </FONT>If <FONT STYLE="letter-spacing: -0.05pt">the Fund is unable
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">borrow funds to make qualifying investments, it may</FONT> no <FONT STYLE="letter-spacing: -0.05pt">longer
qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC. The Fund would then </FONT>be <FONT STYLE="letter-spacing: -0.05pt">subject
to corporate income tax on its net investment income and realized capital gains, and distributions to stockholders would be subject</FONT>
to <FONT STYLE="letter-spacing: -0.05pt">income tax as ordinary dividends.</FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8.85pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
Fund has the ability to borrow funds and issue forms of senior securities representing indebtedness or stock, such as preferred
stock, subject to certain restrictions. Net taxable investment income and net taxable realized gains from the sales </FONT>of <FONT STYLE="letter-spacing: -0.05pt">portfolio
investments are intended to </FONT>be <FONT STYLE="letter-spacing: -0.05pt">distributed at least annually, to the extent such amounts
are not reserved for payment of expenses and contingencies or to make follow-on </FONT>or <FONT STYLE="letter-spacing: -0.05pt">new
investments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
Fund reserves the right</FONT> to <FONT STYLE="letter-spacing: -0.05pt">retain net long-term capital gains in excess of net short-term
capital losses for reinvestment or to pay contingencies and expenses. Such retained</FONT> amounts, if any, <FONT STYLE="letter-spacing: -0.05pt">will
be taxable to the Fund as long-term capital gains and stockholders will be able to claim their proportionate share of the federal
income taxes paid on such gains as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">credit against their own federal income tax liabilities.
Stockholders will also be entitled </FONT>to <FONT STYLE="letter-spacing: -0.05pt">increase the adjusted tax basis of their Fund
shares by the difference between their undistributed capital gains and their tax credit.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
are evaluating the impact of current market conditions on our portfolio company valuations </FONT>and <FONT STYLE="letter-spacing: -0.05pt">their
ability</FONT> to <FONT STYLE="letter-spacing: -0.05pt">provide current income. We have followed valuation techniques in </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">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 </FONT>on <FONT STYLE="letter-spacing: -0.05pt">hand
will be sufficient</FONT> to <FONT STYLE="letter-spacing: -0.05pt">meet operating requirements and</FONT> to <FONT STYLE="letter-spacing: -0.05pt">finance
routine capital expenditures</FONT> <FONT STYLE="letter-spacing: -0.1pt">through</FONT> <FONT STYLE="letter-spacing: -0.05pt">the
next twelve months. If we effect </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation of the Fund as described under &ldquo;<I>Significant
Developments </I></FONT><I>&ndash; <FONT STYLE="letter-spacing: -0.05pt">Plan of Reorganization and Share Exchange with MVC Capital&rdquo;</FONT></I>
and <FONT STYLE="letter-spacing: -0.05pt">&ldquo;&ndash; <I>Authorization to Withdraw BDC Election</I>&rdquo; above, we may utilize
some or </FONT>a <FONT STYLE="letter-spacing: -0.05pt">substantial portion of our current liquidity</FONT> in <FONT STYLE="letter-spacing: -0.05pt">connection
with </FONT>a <FONT STYLE="letter-spacing: -0.05pt">contemplated transaction as payment of the purchase price and to pay associated
legal, due diligence, accounting, and other fees. Further, we may borrow funds from financial institutions or other providers </FONT>of
<FONT STYLE="letter-spacing: -0.05pt">debt capital </FONT>to <FONT STYLE="letter-spacing: -0.05pt">provide and pay for </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">part of the consideration and expenses necessary to effect </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Year
Ended December 31, 2019</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
of December 31, 2019, we had total assets of $75.1 million, of which $40.6 million were invested in portfolio investments and $4.0
million were invested in cash and cash equivalents. Among our portfolio investments, $1.0 million (at fair value) or 2.1% of net
asset value were in the form of notes receivable from portfolio companies as of December 31, 2019.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
of December 31, 2019, we also had $29.3 million of temporary cash investments and restricted </FONT>cash, <FONT STYLE="letter-spacing: -0.05pt">including
primarily the proceeds of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">quarter-end margin loan that we incurred to maintain the
diversification requirements applicable </FONT>to a <FONT STYLE="letter-spacing: -0.05pt">RIC. Of this amount, $29.0 million was
invested</FONT> in <FONT STYLE="letter-spacing: -0.05pt">U.S. Treasury bills and $0.3 million represented </FONT>a <FONT STYLE="letter-spacing: -0.05pt">required
1% brokerage margin deposit. These securities were held </FONT>by a <FONT STYLE="letter-spacing: -0.05pt">securities brokerage
firm and pledged along with other assets to secure repayment of the margin</FONT> loan. The <FONT STYLE="letter-spacing: -0.05pt">U.S.
Treasury bills matured</FONT> on <FONT STYLE="letter-spacing: -0.05pt">January 5, 2020 and we subsequently repaid this margin loan.
The margin interest </FONT>was <FONT STYLE="letter-spacing: -0.05pt">paid on February</FONT> 5, <FONT STYLE="letter-spacing: -0.05pt">2020.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.45pt 0 5.3pt; text-align: justify; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Operating
Activities.</I> We used $5.4 million in cash for operating activities </FONT>in <FONT STYLE="letter-spacing: -0.05pt">2019. </FONT>In
<FONT STYLE="letter-spacing: -0.05pt">2019, we made </FONT>no <FONT STYLE="letter-spacing: -0.05pt">new investments in portfolio
companies. We paid fees to our professional advisers, directors, banks and others </FONT>of <FONT STYLE="letter-spacing: -0.05pt">$3.7
million, while realizing </FONT>a <FONT STYLE="letter-spacing: -0.05pt">loss of </FONT>$2.7 <FONT STYLE="letter-spacing: -0.05pt">million
from the disposition of a portfolio company.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Financing Activities.</I>
We provided $2.0 million in cash from financing activities for 2019. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">did not declare
any dividends in 2019.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Year
Ended December 31, 2018</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
of December 31, 2018, we had total assets of $70.9 million, of which $35.0 million were invested in portfolio investments and $7.4
million were invested in cash and cash equivalents. Among our portfolio investments, $1.0 million </FONT>(at <FONT STYLE="letter-spacing: -0.05pt">fair
value) or 2.7% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">net asset value were in the form of notes receivable from portfolio
companies as of December 31, 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
of December 31, 2018, we also had $27.3 million of temporary cash investments and restricted </FONT>cash, <FONT STYLE="letter-spacing: -0.05pt">including
primarily the proceeds of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">quarter-end margin loan that we incurred to maintain the
diversification requirements applicable </FONT>to a <FONT STYLE="letter-spacing: -0.05pt">RIC. Of this amount, </FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.1pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">$27.0 million was
invested</FONT> in <FONT STYLE="letter-spacing: -0.05pt">U.S. Treasury bills and $0.3 million represented </FONT>a <FONT STYLE="letter-spacing: -0.05pt">required
1% brokerage margin deposit. These securities were held </FONT>by a <FONT STYLE="letter-spacing: -0.05pt">securities brokerage
firm and pledged along with other assets to secure repayment of the margin</FONT> loan. The <FONT STYLE="letter-spacing: -0.05pt">U.S.
Treasury bills were sold</FONT> on <FONT STYLE="letter-spacing: -0.05pt">January 2, 2019 and we subsequently repaid this margin
loan. The margin interest </FONT>was <FONT STYLE="letter-spacing: -0.05pt">paid on February</FONT> 5, <FONT STYLE="letter-spacing: -0.05pt">2019.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.45pt 0 5.3pt; text-align: justify; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Operating
Activities.</I> We used $12.3 million in cash for operating activities </FONT>in <FONT STYLE="letter-spacing: -0.05pt">2018. </FONT>In
<FONT STYLE="letter-spacing: -0.05pt">2018, we made </FONT>no <FONT STYLE="letter-spacing: -0.05pt">new investments in portfolio
companies. We paid fees to our professional advisers, directors, banks and others </FONT>of <FONT STYLE="letter-spacing: -0.05pt">$4.0
million, while realizing </FONT>a <FONT STYLE="letter-spacing: -0.05pt">gain of </FONT>$9 <FONT STYLE="letter-spacing: -0.05pt">thousand
from the disposition of temporary cash investments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Financing Activities.</I>
We provided $9.0 million in cash from financing activities for 2018. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">did not declare
any dividends in 2018.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Year
Ended December 31, 2017</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
of December 31, 2017, we had total assets of $61.2 million, of which $31.1 million were invested in portfolio investments and $10.8
million were invested in cash and cash equivalents. Among our portfolio investments, $1.0 million </FONT>(at <FONT STYLE="letter-spacing: -0.05pt">fair
value) or 2.3% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">net asset value were in the form of notes receivable from portfolio
companies as of December 31, 2017.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.95pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
of December 31, 2017, we also had $18.2 million of temporary cash investments and restricted </FONT>cash, <FONT STYLE="letter-spacing: -0.05pt">including
primarily the proceeds of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">quarter-end margin loan that we incurred to maintain the
diversification requirements applicable </FONT>to a <FONT STYLE="letter-spacing: -0.05pt">RIC. Of this amount, $18.0 million was
invested</FONT> in <FONT STYLE="letter-spacing: -0.05pt">U.S. Treasury bills and $0.2 million represented </FONT>a <FONT STYLE="letter-spacing: -0.05pt">required
1% brokerage margin deposit. These securities were held </FONT>by a <FONT STYLE="letter-spacing: -0.05pt">securities brokerage
firm and pledged along with other assets to secure repayment of the margin</FONT> loan. The <FONT STYLE="letter-spacing: -0.05pt">U.S.
Treasury bills matured on January </FONT>4, <FONT STYLE="letter-spacing: -0.05pt">2018 </FONT>and <FONT STYLE="letter-spacing: -0.05pt">we
subsequently repaid this margin loan. The margin interest was paid</FONT> on <FONT STYLE="letter-spacing: -0.05pt">February 5,
2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Operating
Activities.</I> We provided $10.8 million in cash for operating activities </FONT>in <FONT STYLE="letter-spacing: -0.05pt">2017.
</FONT>In <FONT STYLE="letter-spacing: -0.05pt">2017, we made </FONT>no <FONT STYLE="letter-spacing: -0.05pt">new investments in
portfolio companies. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">paid fees to our professional advisers, directors, banks and
others of $7.0 million, while realizing </FONT>a <FONT STYLE="letter-spacing: -0.05pt">loss of $5 thousand from the disposition
of temporary cash investments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Financing Activities.</I>
We used $12.0 million in cash from financing activities for 2017. We did not declare any dividends in 2017.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&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; text-indent: 0.5in"><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"><B>&nbsp;</B></P>

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


<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Year
Ended December 31, 2019 as compared to Year Ended December 31, 2018</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Total income from
portfolio securities decreased $0.1 million in 2019 due to the decrease in interest-bearing investments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Compensation expenses
were comparable from 2018 to 2019, and were $1.7 million respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Professional fees
decreased to $1.0 million in 2019 from $1.3 million in 2018, primarily due to a decline in consulting and legal fees.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">General and administrative
expenses were comparable from 2018 to 2019, and were $0.5 million and $0.4 million respectively.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">result of the factors described above, net investment loss after expenses was $3.4
million for 2019 as compared to</FONT> a <FONT STYLE="letter-spacing: -0.05pt">net investment loss </FONT>of <FONT STYLE="letter-spacing: -0.05pt">$3.6
million </FONT>in <FONT STYLE="letter-spacing: -0.05pt">2018.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0.35pt 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Year
Ended December 31, 2018 as compared to Year Ended December 31, 2017</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Total income from
portfolio securities decreased $0.1 million in 2018 due to the decrease in interest-bearing investments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Compensation
expense </FONT><FONT STYLE="letter-spacing: -0.1pt">decreased</FONT> <FONT STYLE="letter-spacing: -0.05pt">to $1.7 million in 2018
from </FONT>$2.2 <FONT STYLE="letter-spacing: -0.05pt">million in 2017, primarily attributable </FONT>to <FONT STYLE="letter-spacing: -0.05pt">awards
granted in 2017 pursuant to our 2016 Equity Incentive Plan.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">General and administrative
expenses were comparable from 2017 to 2018, and were $0.4 million and $0.4 million respectively.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">result of the factors described above, net investment loss after expenses was $3.6
million for 2018 as compared to</FONT> a <FONT STYLE="letter-spacing: -0.05pt">net investment loss </FONT>of <FONT STYLE="letter-spacing: -0.05pt">$4.0
million </FONT>in <FONT STYLE="letter-spacing: -0.05pt">2017.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

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<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 377.5pt 0 5.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 377.5pt 0 5.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 377.5pt 0 5.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>Summary of Portfolio Investment Activity</B></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Year
Ended December 31, 2019</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">During 2019, we
received 36,757 shares of MVC in the form of stock dividend payments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">The following
table includes summarizes investment activity during the year ended December 31, 2019 (in thousands):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Existing Investments</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cash</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Non-Cash</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Follow-On</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; 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">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">333</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">333</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; 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><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><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: rgb(204,238,255)">
    <TD STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&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">&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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">333</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">333</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Year
Ended December 31, 2018</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">During 2018, we
received 30,930 shares of MVC in the form of stock dividend payments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">The following
table includes summarizes investment activity during the year ended December 31, 2018 (in thousands):</FONT></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0.2pt 0 0"></P>

<P STYLE="font: 2pt/2pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 9pt Sans-Serif; margin: 0.2pt 0 0; color: Red"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0.2pt 0 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="15" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Investment Activity</TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">New Investments</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Existing Investments</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Portfolio Company</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Cash</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Non-Cash</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Follow-On</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">PIK</TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; 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">&nbsp;</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">&nbsp;</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">&nbsp;</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">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">303</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">303</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; 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><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><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: rgb(204,238,255)">
    <TD STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">303</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">303</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 9pt Sans-Serif; margin: 0.2pt 0 0; color: Red"><B></B></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><B><I></I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><B><I>&nbsp;</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><B><I></I></B></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.85pt"><FONT STYLE="letter-spacing: -0.05pt">Year
Ended December 31, 2019</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.85pt"><FONT STYLE="font-style: normal; font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.7pt 0 5.3pt; text-align: justify; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">During
2019,</FONT> we dissolved Equus Media Development Company, LLC (&ldquo;EMDC&rdquo;), a wholly-owned subsidiary of the Fund and
transferred EMDC&rsquo;s assets, consisting of approximately $211,000 in cash and various creative entertainment properties, to
the Fund. We also <FONT STYLE="letter-spacing: -0.05pt">realized capital gains of </FONT>$53 <FONT STYLE="letter-spacing: -0.05pt">thousand
as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result of disposition of temporary cash investments.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.85pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.85pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.85pt"><FONT STYLE="letter-spacing: -0.05pt">Year
Ended December 31, 2018</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.85pt"><FONT STYLE="letter-spacing: -0.05pt">During 2018,
</FONT>we <FONT STYLE="letter-spacing: -0.05pt">realized capital gains of </FONT>$9 <FONT STYLE="letter-spacing: -0.05pt">thousand
as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result of disposition of temporary cash investments.</FONT>&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 8.3pt"><FONT STYLE="letter-spacing: -0.05pt">Changes in
Unrealized Appreciation of Portfolio Securities</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 8.3pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.85pt"><FONT STYLE="letter-spacing: -0.05pt">Year
Ended December 31, 2019</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.7pt 0 5.3pt; text-align: justify; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.7pt 0 4.5pt; text-align: justify; text-indent: 28.35pt"><FONT STYLE="letter-spacing: -0.05pt">During
2019, we recorded an increase of $8.3 million in net unrealized appreciation, from $17.1 million at December 31, 2018 to $25.4
million. </FONT>Such change in unrealized appreciation resulted primarily from the following changes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 43.15pt"></TD><TD STYLE="width: 16.15pt">(i)</TD><TD STYLE="padding-right: 18.15pt">Increase in the fair value of our shareholding in MVC of $0.8 million due to an increase in
the share price of MVC and the receipt of dividend payments in the form of additional shares of MVC during the year;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 43.15pt"></TD><TD STYLE="width: 16.15pt">(ii)</TD><TD STYLE="padding-right: 41.2pt">Increase in fair value of our shareholding in PalletOne, Inc. of $6.0 million due to improved
operating performance;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 43.15pt"></TD><TD STYLE="width: 16.15pt">(iii)</TD><TD STYLE="padding-right: 29.75pt">Transfer of unrealized depreciation to realized loss of our holdings in EMDC of $2.8 million
in connection with the dissolution of EMDC and the transfer of its assets to the Fund; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 43.15pt"></TD><TD STYLE="width: 16.15pt">(iv)</TD><TD STYLE="padding-right: 15.1pt">Decrease in the fair value of our holdings in Equus Energy, LLC of $1.0 million, principally
due to decreases in gas prices and decreases in the short and long term forward pricing curve for oil.</TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.85pt"><FONT STYLE="letter-spacing: -0.05pt">Year
Ended December 31, 2018</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.4pt 0 8.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">During
2018, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">recorded an increase of $3.6 million in net unrealized appreciation, from
$13.5 million at December 31, 2017 to $17.1 million at December 31, 2018, in our portfolio securities. Such increase resulted primarily
from the following changes:</FONT></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 43.15pt"></TD><TD STYLE="width: 16.15pt"><FONT STYLE="letter-spacing: -0.05pt">(i)</FONT></TD><TD STYLE="padding-right: 11.4pt"><FONT STYLE="letter-spacing: -0.05pt">Decrease in the fair value of our shareholding in MVC of
$1.2 million due to a decrease in the MVC share price during 2018 which was partially offset by the receipt of dividend payments
in the form of additional shares of MVC;</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 43.15pt"></TD><TD STYLE="width: 16.15pt"><FONT STYLE="letter-spacing: -0.05pt">(ii)</FONT></TD><TD STYLE="padding-right: 11.4pt"><FONT STYLE="letter-spacing: -0.05pt">Increase in fair value of our shareholding in PalletOne,
Inc. (&ldquo;PalletOne&rdquo;) of $3.8 million due to an overall improvement in comparable industry sectors, as well as continued
revenue increases and promising acquisition and growth prospects; and</FONT></TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 43.15pt"></TD><TD STYLE="width: 16.15pt"><FONT STYLE="letter-spacing: -0.05pt">(iii)</FONT></TD><TD STYLE="padding-right: 11.4pt"><FONT STYLE="letter-spacing: -0.05pt">Increase in the fair value of our holdings in Equus Energy
of $1.0 million, principally due to an increase in comparable transactions for mineral leases.</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.45pt 0 0"></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.85pt"></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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


<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"></P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Portfolio Securities</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">As of December
31, 2019, we had active investments in the following entities </FONT>or <FONT STYLE="letter-spacing: -0.05pt">portfolio companies:</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">5<FONT STYLE="font-size: 7pt">TH</FONT>
Element Tracking, LLC</FONT></P>

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

<P STYLE="font: 10pt/100% Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">5<FONT STYLE="font-size: 6.5pt; line-height: 100%">TH</FONT>
Element is</FONT> a <FONT STYLE="letter-spacing: -0.05pt">technology holding company based outside of Boston, Massachusetts. On
January</FONT> 6, <FONT STYLE="letter-spacing: -0.05pt">2015, in connection with the sale</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the
Fund&rsquo;s interest in Spectrum to 5<FONT STYLE="font-size: 6.5pt; line-height: 100%">TH</FONT> Element, we received </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">subordinated note in the original principal amount of $0.9 million maturing May 12, 2018
and bearing interest at the rate </FONT>of <FONT STYLE="letter-spacing: -0.05pt">14% per annum. As of December 31, 2019 and 2018,
we valued the promissory note at its original investment amount of $0.9 million plus certain PIK interest, as accrued.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Equus
Energy, LLC</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.55pt 0 5.3pt; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt/100% Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; 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
presently represented by 141 producing and non-producing oil and gas wells, including associated development rights of approximately
21,520 acres situated on 11 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
one-third of the producing well interests. The assets were purchased from Warren American Oil Company, LLC, a Tulsa-based oil and
gas firm. During the third and fourth quarters of 2018, Equus Energy sold two separate working interests it held in the Permian
Basin in west Texas for an aggregate selling price of $800,000. Notwithstanding these sales and the increase in crude prices during
2019, natural gas prices have continued to decline and the short and long-term pricing curves for oil have declined substantially.
As a result, the fair value of this holding decreased to $8.0 million at December 31, 2019 from $9.0 million at December 31, 2018.
See also <I>Significant Developments &ndash; Impact of the Coronavirus &ndash; Impact of Geopolitical Events and the Coronavirus
on the Oil and Gas Sector</I> above.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.55pt 0 5.3pt; text-indent: 24.5pt"></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">MVC
Capital, Inc.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.4pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">MVC
is </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC traded on the NYSE that provides long-term debt and equity investment capital
to fund growth, acquisitions and recapitalizations of companies in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">variety of industries.
On May 14, 2014, as part of our Plan</FONT> of <FONT STYLE="letter-spacing: -0.05pt">Reorganization, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">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 </I></FONT><I>of <FONT STYLE="letter-spacing: -0.05pt">Reorganization&rdquo;</FONT></I><FONT STYLE="letter-spacing: -0.05pt">
above). During 2019 and 2018, we received 36,757 and 30,930 additional shares </FONT>in <FONT STYLE="letter-spacing: -0.05pt">the
form of dividend payments. As of December </FONT>31, 2019, we <FONT STYLE="letter-spacing: -0.05pt">valued our 563,894 MVC shares
at $5.2 million, </FONT>an <FONT STYLE="letter-spacing: -0.05pt">increase from $4.3 million at December 31, 2018. </FONT><FONT STYLE="letter-spacing: -0.1pt">The</FONT>
<FONT STYLE="letter-spacing: -0.05pt">value of our MVC shares was based on MVC&rsquo;s closing trading price </FONT>on the <FONT STYLE="letter-spacing: -0.05pt">NYSE
as of such dates.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">PalletOne,
Inc.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.65pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">PalletOne
is considered one </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the largest wooden pallet manufacturers in the United States,
operating 20 wood pallet manufacturing facilities and </FONT>3 <FONT STYLE="letter-spacing: -0.05pt">wood treating facilities across
</FONT>11 <FONT STYLE="letter-spacing: -0.05pt">states. PalletOne has </FONT>a <FONT STYLE="letter-spacing: -0.05pt">diverse customer
base and competes with numerous other manufacturers </FONT>on a <FONT STYLE="letter-spacing: -0.05pt">regional basis and now is</FONT>
a <FONT STYLE="letter-spacing: -0.05pt">major regional supplier </FONT>of treated <FONT STYLE="letter-spacing: -0.05pt">wood. Its
largest customers are agricultural and construction related companies including growers, grocery stores, and housing construction
companies, and home-improvement chains. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">believe PalletOne&rsquo;s numerous locations
allow for </FONT>an <FONT STYLE="letter-spacing: -0.05pt">advantage in pursuing large corporate accounts, as sales of pallets and
pressure-treated wood are typically regionalized to specific </FONT><FONT STYLE="letter-spacing: -0.1pt">locations.</FONT> The
<FONT STYLE="letter-spacing: -0.05pt">pallet manufacturing industry is mature and is experiencing continuing slow growth as the
number </FONT>of <FONT STYLE="letter-spacing: -0.05pt">participants shrinks due </FONT>to <FONT STYLE="letter-spacing: -0.05pt">consolidation
and underutilized plants, which have been eliminated. However, demand continues to increase for pressure-treated lumber for residential
fencing and decking which has been a principal contributor</FONT> to <FONT STYLE="letter-spacing: -0.05pt">the increases in PalletOne&rsquo;s
revenue. We initially invested in PalletOne in October 2001. Our investment in PalletOne presently consists of 350,000 shares of
common stock, which represents </FONT>a <FONT STYLE="letter-spacing: -0.05pt">fully-diluted equity interest of 18.7%. Due </FONT>to
<FONT STYLE="letter-spacing: -0.05pt">continued improved operating performance, we valued our interest in PalletOne as of December
31, 2019 as of $26.5 million, an increase from $20.5 million from December 31, 2018.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Off Balance
Sheet Arrangements</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 15.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
had an operating lease for office space that expired in September 2014. Our current office space lease as of December 31, 2019
</FONT>is <FONT STYLE="letter-spacing: -0.05pt">month-to-month. Rent expense, inclusive </FONT>of <FONT STYLE="letter-spacing: -0.05pt">common
area maintenance costs, was $111,000 for </FONT>the <FONT STYLE="letter-spacing: -0.05pt">year ended December 31, 2019.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Contractual
Obligations</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">As of December
31, 2019, we had no outstanding commitments to our portfolio company investments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><B>Dividends</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.05pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><B>Subsequent Events</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 30.7pt"><FONT STYLE="letter-spacing: -0.05pt">Our
Management performed an evaluation of the Fund&rsquo;s activity through the date the financial statements were issued, noting the
following subsequent events:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 30.7pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 30.7pt"><FONT STYLE="letter-spacing: -0.05pt">On
January 7, 2020, our holding in $29.0 million in U. S. Treasury Bills matured and we repaid our year-end margin loan.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 30.7pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 30.7pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 30.05pt 0 5.3pt; text-indent: 24.5pt">Since February 2020, with the spread
of the coronavirus, we have implemented a number of directives to ensure the safety of our personnel and the continuity of our
operations. We have suspended all in-person meetings and have required all employees and service providers to work from a remote
location. We utilize a cloud-based storage and retrieval system for our records and can communicate electronically or by telephone
with third parties such as our financial institutions, legal and accounting advisors, and our portfolio companies. We intend to
monitor the situation as it evolves and take additional precautions as necessary.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-indent: 30.7pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><A NAME="a_012"></A><FONT STYLE="font-style: normal; letter-spacing: -0.05pt">Item
7A.</FONT> <FONT STYLE="letter-spacing: -0.05pt">Quantitative and Qualitative Disclosures About Market Risk</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 30.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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,</FONT> we <FONT STYLE="letter-spacing: -0.05pt">may
invest in companies outside the United States, including</FONT> in <FONT STYLE="letter-spacing: -0.05pt">Europe and Asia, which
would give rise to exposure to foreign currency value fluctuations. </FONT>We do <FONT STYLE="letter-spacing: -0.05pt">not use
derivative financial instruments</FONT> to <FONT STYLE="letter-spacing: -0.05pt">mitigate any of these risks. The return </FONT>on
<FONT STYLE="letter-spacing: -0.05pt">investments </FONT>is <FONT STYLE="letter-spacing: -0.05pt">generally not affected by foreign
currency fluctuations.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
investments </FONT>in <FONT STYLE="letter-spacing: -0.05pt">portfolio securities consist </FONT>of <FONT STYLE="letter-spacing: -0.05pt">some
fixed-rate debt securities. Since the debt securities are generally priced at </FONT>a <FONT STYLE="letter-spacing: -0.05pt">fixed</FONT>
rate, <FONT STYLE="letter-spacing: -0.05pt">changes</FONT> in interest rates <FONT STYLE="letter-spacing: -0.05pt">do not directly
affect interest income. In addition, changes in market interest rates are not typically </FONT>a <FONT STYLE="letter-spacing: -0.1pt">significant</FONT>
<FONT STYLE="letter-spacing: -0.05pt">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.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8pt 0 5.3pt; text-indent: 24.5pt">A <FONT STYLE="letter-spacing: -0.05pt">major
portion </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our investment portfolio consists</FONT> of <FONT STYLE="letter-spacing: -0.05pt">debt
and equity investments in private companies. Modest changes in public market equity prices generally </FONT>do <FONT STYLE="letter-spacing: -0.05pt">not
significantly impact the estimated fair value of these investments. However, significant changes in market equity prices can have
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">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. </FONT>A <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">hypothetical ten percent change </FONT>in
<FONT STYLE="letter-spacing: -0.05pt">these equity prices would result in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">similar
percentage change in the fair value </FONT>of <FONT STYLE="letter-spacing: -0.05pt">these securities.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
are classified as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">&ldquo;non-diversified&rdquo; investment company under</FONT>
the 1940 <FONT STYLE="letter-spacing: -0.05pt">Act, which</FONT> means we <FONT STYLE="letter-spacing: -0.05pt">are not limited
in the proportion of our assets that may be invested in the securities of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">single
user. The value of one segment called &ldquo;Shipping products and services&rdquo; includes one portfolio company and was 57.6%
of our net asset value, 35.3% of our total assets and 65.2% of our investments in portfolio company securities (at fair value)
as of December 31, 2019. The value of one segment called &ldquo;Energy&rdquo; includes one portfolio company and was 17.4% of our
net </FONT>asset value, <FONT STYLE="letter-spacing: -0.05pt">10.7% of our total assets and 19.7% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
investments in portfolio company securities (at fair value) as of December 31, 2019. Changes in business or industry trends or
in the financial condition, results of operations, or the market&rsquo;s assessment </FONT>of <FONT STYLE="letter-spacing: -0.05pt">any
single portfolio company will affect the net asset value and the market price </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
common stock </FONT>to a <FONT STYLE="letter-spacing: -0.05pt">greater extent than would be the case if we were </FONT>a <FONT STYLE="letter-spacing: -0.05pt">&ldquo;diversified&rdquo;
company holding numerous investments.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.85pt; text-align: center">&nbsp;</P>


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    <!-- Field: /Page -->

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

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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-align: justify"><FONT STYLE="font-style: normal; letter-spacing: -0.05pt"><A NAME="a_013"></A>Item
8.</FONT> <FONT STYLE="letter-spacing: -0.05pt">Financial</FONT> <FONT STYLE="letter-spacing: -0.1pt">Statements</FONT> <FONT STYLE="letter-spacing: -0.05pt">and
Supplementary Data</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.5pt 0 0"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.5pt 0 0"><B><I></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt"><B>Report</B></FONT><B>
of <FONT STYLE="letter-spacing: -0.05pt">Independent Registered Public Accounting</FONT> <FONT STYLE="letter-spacing: -0.1pt">Firm</FONT></B></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0; text-align: left">Shareholders and Board of Directors</P>

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

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


<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-align: justify">Opinion on the Financial Statements</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.3pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">We
have audited the accompanying balance sheets of Equus Total Return, Inc. (the &ldquo;Fund&rdquo;), including the
schedule</FONT> of <FONT STYLE="letter-spacing: -0.05pt">investments, as of December 31, 2019 and 2018, the related
statements of operations, changes in net assets and cash flows for each of the three years in the period ended December 31,
2019 and the selected per share data and ratios for each of the five years in the period ended December 31, 2019, and the
related notes and financial statement schedule listed in the Table</FONT> of <FONT STYLE="letter-spacing: -0.05pt">Contents
in Item 15(a)(1) (collectively referred to as the &ldquo;financial statements&rdquo;). In our opinion, the financial
statements present fairly, in all material respects, the financial position of the Fund at December 31, 2019 and 2018, and
the results of  its operations and  its cash flows for each of the three years in the period ended December 31, 2019, and
the selected per share data and ratios for each</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the five years</FONT> in <FONT STYLE="letter-spacing: -0.05pt">the
period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of
America.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-align: justify">Basis for <FONT STYLE="letter-spacing: -0.05pt">Opinion</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.3pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">These
financial statements are the responsibility</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the Fund&rsquo;s management. Our responsibility</FONT>
is <FONT STYLE="letter-spacing: -0.05pt">to express an opinion on the Fund&rsquo;s financial statements based on our audits. We
are</FONT> a <FONT STYLE="letter-spacing: -0.05pt">public accounting firm registered with the Public Company Accounting Oversight
Board (United</FONT> States) <FONT STYLE="letter-spacing: -0.05pt">(&ldquo;PCAOB&rdquo;) and are required to be independent with
respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities
and Exchange Commission and the PCAOB.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.35pt 0 5.3pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or
fraud. The Fund</FONT> is <FONT STYLE="letter-spacing: -0.05pt">not required to have, nor were we engaged</FONT> to <FONT STYLE="letter-spacing: -0.05pt">perform,
an audit</FONT> of <FONT STYLE="letter-spacing: -0.05pt">its internal control over financial reporting. As part</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our
audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing
an opinion</FONT> on <FONT STYLE="letter-spacing: -0.05pt">the effectiveness of the Fund&rsquo;s internal control over financial
reporting. Accordingly, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">express no such opinion.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.3pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether</FONT>
<FONT STYLE="letter-spacing: -0.1pt">due</FONT> <FONT STYLE="letter-spacing: -0.05pt">to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on</FONT> a <FONT STYLE="letter-spacing: -0.05pt">test basis,
evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation</FONT> of the <FONT STYLE="letter-spacing: -0.05pt">financial
statements. We believe that our audits provide</FONT> a <FONT STYLE="letter-spacing: -0.05pt">reasonable basis for our opinion.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.3pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">Emphasis
of Matter - COVID-19</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.3pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.3pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">As
more fully described in Note 12 to the financial statements, the Fund  expects to be materially impacted by the outbreak of
a novel coronavirus (&ldquo;COVID-19&rdquo;), which was declared a global pandemic by the World Health Organization in March
2020.&nbsp;</FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-align: justify">/s/ <FONT STYLE="letter-spacing: -0.05pt">BDO
USA,</FONT> <FONT STYLE="letter-spacing: -0.1pt">LLP</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 346.95pt 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">We have served
as the Fund's auditor since 2014. Houston, Texas</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">March
30, 2020</FONT></P>

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

<P STYLE="font: 10pt 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>


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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="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">December
31,</P>
                                                                                                                   <P STYLE="margin-top: 0; margin-bottom: 0">2019</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">December
31,</P>
                                                                                                                   <P STYLE="margin-top: 0; margin-bottom: 0">2018</P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">(in thousands, except per share amounts)</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>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: White">
    <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: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control investments (cost at $7,050 and $10,050, respectively)</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">8,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">9,210</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;Affiliate investments (cost at $350)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,500</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 (cost at $6,912 and $6,579, respectively)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,171</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,328</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments (cost at $977)</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">977</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">977</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments in portfolio securities at fair value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,648</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,015</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Temporary cash investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,991</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,981</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">3,966</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,425</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Restricted cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">290</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Accounts receivable from affiliates</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">561</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">561</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Accrued interest and dividend receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">489</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">568</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">Other assets</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">141</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">121</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 assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">75,086</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">70,941</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">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: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">77</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">196</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 to related parties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">28,991</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">26,981</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 liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">29,097</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,446</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Commitments and contingencies (see Note 7)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&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: rgb(204,238,255)">
    <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">45,989</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">43,495</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net assets consist of:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, par value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital in excess of par value</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">56,062</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,741</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated undistributed deficit</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(10,086</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(12,258</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">45,989</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">43,495</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">13,518</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">13,518</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">Shares of preferred stock issued and outstanding, $.001 par value, 5,000 shares authorized</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; font-size: 11.5pt; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; font-size: 11.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Net asset value per share</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.40</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">3.22</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0.55pt 0 0; text-indent: 498.75pt">&nbsp;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0.55pt 0 0; text-indent: 498.75pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.4pt 0 0; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">The
accompanying notes are an integral part of these financial statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 222.5pt; text-align: center">&nbsp;</P>


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

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0"></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 OPERATIONS</B></P>


<P STYLE="font: 8.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Sans-Serif; margin: 0 215.3pt 0 13.5pt; text-align: center; color: Red"><FONT STYLE="letter-spacing: -0.05pt"><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 STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="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; 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">2019</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">2018</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">2017</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Investment income:</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend income:</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-affiliate investments - related party</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">255</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">381</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">265</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&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">&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">69</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">285</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">255</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">450</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">550</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 from temporary cash investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">30</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10</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;Other income</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">54</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">&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">351</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">480</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">560</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Expenses:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transaction costs</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,501</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,706</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,731</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,231</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Professional fees</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">974</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,254</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,294</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">378</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">441</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">531</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 expenses</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">474</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">455</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">397</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">162</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">129</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">89</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">37</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21</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; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest 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">11</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4</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">11</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses before merger termination fee</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">3,742</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,035</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">7,074</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;Merger termination fee (See Note 6)</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">(2,500</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses, net of merger termination fee</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">3,742</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,035</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,574</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><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">Net investment loss</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">(3,391</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">(3,555</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">(4,014</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net realized (loss) gain:</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: 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">(2,789</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; 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">53</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(5</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized (loss) gain</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">(2,736</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(5</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&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><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">Net unrealized appreciation of portfolio securities:</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,310</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">14,498</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;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">19,310</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">14,498</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">12,262</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net change in net unrealized appreciation 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">7,790</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,812</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">2,236</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net unrealized depreciation of portfolio securities - related party:</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;End of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,741</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,251</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,036</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(2,251</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,036</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,990</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net change in net unrealized depreciation of 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">510</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">(1,215</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">954</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">Net 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">2,173</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">51</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(829</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-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net increase in net assets resulting from operations per share:</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.16</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">0.00</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">(0.06</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Weighted average shares outstanding:</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&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">13,518</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">13,518</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">13,345</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 9pt Sans-Serif; margin: 0 215.3pt 0 13.5pt; text-align: center; color: Red"><FONT STYLE="letter-spacing: -0.05pt"><B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.4pt 0 0; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.4pt 0 0; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">The
accompanying notes are an integral part of these financial statements</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; 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>STATEMENTS OF CHANGES IN NET ASSETS</B></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"></P>


<P STYLE="font: bold 10pt/102% Times New Roman, Times, Serif; margin: 0 167.25pt 0 184.4pt; text-indent: 35.25pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: bold 10pt/102% Times New Roman, Times, Serif; margin: 0 167.25pt 0 184.4pt; text-indent: 35.25pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt/102% Times New Roman, Times, Serif; margin: 0 167.25pt 0 184.4pt; text-indent: 35.25pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: bold 10pt/102% Times New Roman, Times, Serif; margin: 0 167.25pt 0 184.4pt; text-indent: 35.25pt"><FONT STYLE="letter-spacing: -0.05pt"></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="11" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Common Stock</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Number of Shares</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">Par 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">Capital in Excess of Par 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">Accumulated Undistributed Deficit</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">Total Net</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Assets</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%">&nbsp;Balances at January 1, 2017</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">12,674</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: 9%; text-align: right">13</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: 9%; text-align: right">54,213</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: 9%; text-align: right">(11,486</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 9%; text-align: right">42,740</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right">&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><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;Share-based incentive compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">844</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,091</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,091</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;Net (decrease) increase in net assets resulting from operations</TD><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; padding-left: 12pt">Net investment loss</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">(4,014</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,014</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: 12pt">Net realized loss (gain)</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>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 12pt">Unrealized appreciation of portfolio securities, 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">&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">2,236</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,236</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: 12pt">Unrealized depreciation of 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">&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">&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">954</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">954</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">&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: 11.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11.5pt; 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><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>&nbsp;Balances at December 31, 2017</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,518</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,304</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,310</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,007</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;Share-based incentive compensation</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">437</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">437</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;Net (decrease) increase in net assets resulting from operations</TD><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; padding-left: 12pt">Net investment loss</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">(3,555</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,555</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: 12pt">Net realized loss (gain)</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">9</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 12pt">Unrealized appreciation of portfolio securities, 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">&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">4,812</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,812</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: 12pt"><P STYLE="margin-top: 0; margin-bottom: 0">Unrealized depreciation of portfolio</P>
                                                      <P STYLE="margin-top: 0; margin-bottom: 0">securities-related party</P></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">&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">(1,215</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,215</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right">&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: 11.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11.5pt; 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><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>&nbsp;Balances at December 31, 2018</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,518</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">55,741</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,259</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">43,495</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 11pt; text-align: right">&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><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;Share-based incentive compensation</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">321</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">321</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;Net (decrease) increase in net assets resulting from operations</TD><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; padding-left: 12pt">Net investment loss</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">(3,391</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,391</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: 12pt">Net realized loss (gain)</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">(2,736</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,736</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 12pt">Unrealized appreciation of portfolio securities, 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">&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">7,790</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,790</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: 12pt">Unrealized depreciation of 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">&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">&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">510</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">510</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">&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: 11.5pt">&nbsp;</TD>
    <TD STYLE="font-size: 11.5pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 11.5pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 11.5pt; 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><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="padding-bottom: 2.5pt">&nbsp;Balances at December 31, 2019</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">13,518</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">13</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">56,062</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(10,086</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">45,989</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



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<P STYLE="font: bold 10pt/102% Times New Roman, Times, Serif; margin: 0 167.25pt 0 184.4pt; text-indent: 35.25pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.4pt 0 0; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">The
accompanying notes are an integral part of these financial statements.</FONT></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">&nbsp;<B>STATEMENTS OF CASH FLOWS</B></P>

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


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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="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)</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">2019</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">2018</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">2017</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Reconciliation of increase (decrease) in net assets resulting from operations to net cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by (used in) 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><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: 46%; text-align: left">Net increase (decrease) in net assets resulting from operations</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">2,173</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">51</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">(829</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash used in operating activities:</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized loss (gain)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,736</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">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7,790</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,812</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,236</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">(510</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,215</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(954</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;Share-based incentive compensation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">321</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">437</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,096</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;Dissolution of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">211</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;Net proceeds from dispositions of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&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">2,013</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;Proceeds from (purchases of) temporary cash investments, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,956</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8,974</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11,991</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 receivable from affiliates</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">25</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest and dividend receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(255</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(451</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(155</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;Other assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(20</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(11</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(33</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;Accounts payable and accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(119</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">74</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(147</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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">(240</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">192</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">(66</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net cash (used in) provided by operating activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5,449</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(12,263</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,710</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">109,949</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">74,966</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">105,942</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">(107,939</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">(65,983</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(117,938</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net cash provided by (used in) financing activities</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">2,010</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">8,983</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">(11,996</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 in cash and cash equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,439</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,280</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,286</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Cash and cash equivalents and restricted cash 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">7,695</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">10,975</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">12,261</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 and restricted cash 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">4,256</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">7,695</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">10,975</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;Accrued interest or dividends exchanged for portfolio securities</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">12</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest or dividends exchanged for portfolio securities - related party</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">334</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">303</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">265</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&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">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>&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;Interest paid</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">19</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">12</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">25</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">21</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">28</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0.2pt 0 0"><B></B></P>

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

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

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.4pt 0 0; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">The
accompanying notes are an integral part of these financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.3pt 0 5.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>


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<P STYLE="font: 10pt 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>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: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0.2pt 0 0"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="19" 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">&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">2019</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">2018</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">2017</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">2016</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">2015</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: right">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" 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">Investment income</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.03</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.04</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.04</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">0.04</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">0.03</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 1pt">Expenses</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.28</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.31</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.34</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.22</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.22</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net investment loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.25</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.27</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.30</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.19</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.19</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Net realized loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.20</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.20</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net change in unrealized appreciation of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.58</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.36</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.17</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.58</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.47</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Net change in unrealized depreciation of 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">0.03</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.09</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">0.07</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.04</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">Net increase (decrease) in net assets resulting from operations</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.16</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.06</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.43</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.08</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Capital transactions:</TD><TD STYLE="color: red">&nbsp;</TD>
    <TD STYLE="color: red; text-align: left">&nbsp;</TD><TD STYLE="color: red; text-align: right">&nbsp;</TD><TD STYLE="color: red; text-align: left">&nbsp;</TD><TD STYLE="color: red">&nbsp;</TD>
    <TD STYLE="color: red; text-align: left">&nbsp;</TD><TD STYLE="color: red; text-align: right">&nbsp;</TD><TD STYLE="color: red; text-align: left">&nbsp;</TD><TD STYLE="color: red">&nbsp;</TD>
    <TD STYLE="color: red; text-align: left">&nbsp;</TD><TD STYLE="color: red; text-align: right">&nbsp;</TD><TD STYLE="color: red; text-align: left">&nbsp;</TD><TD STYLE="color: red">&nbsp;</TD>
    <TD STYLE="color: red; text-align: left">&nbsp;</TD><TD STYLE="color: red; text-align: right">&nbsp;</TD><TD STYLE="color: red; 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;Shares issued for portfolio securities</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">0.04</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.08</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;Dilutive effect of shares issued</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.21</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">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Decrease in net assets resulting from capital transactions</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.02</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.04</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(0.13</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">&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">Net increase (decrease) in net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.18</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">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.19</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.43</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.08</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">Net assets at beginning of period</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3.22</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">3.18</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">3.37</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">2.94</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">2.86</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 at end of period, basic and diluted</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.40</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.22</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.18</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">3.37</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">2.94</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>Weighted average number of shares outstanding during period,</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in thousands</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,518</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,518</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13,345</TD><TD STYLE="text-align: left">&nbsp;</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">12,674</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Market price per share:</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD>&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-left: 12pt">Beginning of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.96</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.40</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.01</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.79</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.10</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 12pt">End of period</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.82</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.96</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.40</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">2.01</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">1.79</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Selected information and ratios:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-left: 12pt">Ratio of expenses to average net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8.36</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.33</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6.52</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.99</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7.61</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 12pt">Ratio of net investment loss to average net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.58</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(8.22</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(5.48</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.12</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(6.40</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: 12pt">Ratio of net increase (decrease) in net assets resulting from operations to average net assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4.86</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.12</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.58</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">13.57</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">3.01</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: 400; font-style: normal; text-align: left; padding-left: 11pt">Total return on market price <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-style: normal; font-weight: 400"><SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(7.14</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(18.33</TD><TD STYLE="text-align: left">%)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19.40</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">12.29</TD><TD STYLE="text-align: left">%</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(14.76</TD><TD STYLE="text-align: left">%)</TD></TR>
</TABLE>



<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0.2pt 0 0"><B></B></P>

<P STYLE="font: 4.5pt Times New Roman, Times, Serif; margin: 3.8pt 0 0 23.3pt">&nbsp;</P>

<P STYLE="font: 4.5pt Times New Roman, Times, Serif; margin: 3.8pt 0 0 23.3pt"></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 3.8pt 0 0 23.3pt"><FONT STYLE="font-size: 4.5pt">(1) </FONT> <FONT STYLE="font-size: 8pt">Total
<FONT STYLE="letter-spacing: -0.05pt">return</FONT> = [(ending market price per share + year-to-date <FONT STYLE="letter-spacing: -0.05pt">dividends</FONT>
paid - <FONT STYLE="letter-spacing: -0.05pt">beginning market price</FONT> per <FONT STYLE="letter-spacing: -0.05pt">share)</FONT>
/ <FONT STYLE="letter-spacing: -0.05pt">beginning market price</FONT> per <FONT STYLE="letter-spacing: -0.05pt">share</FONT></FONT><FONT STYLE="font-size: 9pt; letter-spacing: -0.05pt">].</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.25pt 0 5.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">The
accompanying notes are an integral part of these financial statements.</FONT></P>

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

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0; text-indent: 239.25pt"></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></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, 2019</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: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 7pt Times New Roman, Times, Serif; width: 100%; background-color: white; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; vertical-align: bottom">Name and location of</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Date of Initial</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Cost of</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Fair</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 38%; text-align: left; vertical-align: bottom">Portfolio&nbsp;Company</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 6%; text-align: center; vertical-align: bottom">Industry</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 9%; text-align: center; vertical-align: bottom">Investment</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 18%; text-align: center; vertical-align: bottom">Investment</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 6%; text-align: center; vertical-align: bottom">Principal</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 9%; text-align: center; vertical-align: bottom">Investment</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; width: 11%; vertical-align: bottom">Value<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-style: normal"><B><U STYLE="text-decoration: none"><SUP STYLE="text-decoration: none">(1)</SUP></U></B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Control Investments:&nbsp;&nbsp;Majority-owned <FONT STYLE="font: normal 7pt Times New Roman, Times, Serif"><B><SUP>(3)</SUP></B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-style: normal">:</FONT></B></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><P STYLE="margin-top: 0; margin-bottom: 0">Equus Energy, LLC</P>
                                 <P STYLE="margin-top: 0; margin-bottom: 0">Houston, TX</P></TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;Energy&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;December 2011&nbsp;</TD>
    <TD>&nbsp;Member interest (100%)&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;7,050&nbsp;&nbsp; </TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;8,000</TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="4" STYLE="font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left">Total Control Investments: Majority-owned (represents 11.5% of total investments at fair value)</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;&nbsp;&nbsp;7,050&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,000</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Affiliate Investments <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-style: normal"><B><SUP>(4)</SUP>:</B></FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-top-color: Black; border-top-width: 0.5pt"><P STYLE="margin-top: 0; margin-bottom: 0">PalletOne, Inc.</P>
                                                                 <P STYLE="margin-top: 0; margin-bottom: 0">Bartow, FL</P></TD>
    <TD STYLE="border-top-color: Black; border-top-width: 0.5pt; text-align: center; vertical-align: top">&nbsp;Shipping products and services&nbsp;</TD>
    <TD STYLE="border-top-color: Black; border-top-width: 0.5pt; text-align: center; vertical-align: top">&nbsp;October 2001&nbsp;</TD>
    <TD STYLE="border-top-color: Black; border-top-width: 0.5pt">&nbsp;350,000&nbsp;shares&nbsp;of&nbsp;common stock (18.7%)&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; text-align: right; border-top-color: Black; border-top-width: 0.5pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;26,500</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left">Total Affiliate Investments (represents 38.1% of total investments at fair value)</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;350&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;26,500</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 1pt solid">Non-Affiliate Investments - Related Party (less than 5% owned):</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0">MVC Capital, Inc.</P>
                                    <P STYLE="margin-top: 0; margin-bottom: 0">Purchase, NY</P></TD>
    <TD STYLE="text-align: center; vertical-align: top">Financial services</TD>
    <TD STYLE="text-align: center; vertical-align: top">May 2014</TD>
    <TD STYLE="vertical-align: top">563,894 shares of common stock (1.7%)</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;&nbsp;6,912&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;5,171</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Non-Affiliate Investments - Related Party (represents 7.4% of total investments at fair value)</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;6,912&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;5,171</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 0.5pt solid">Non-Affiliate Investments (less than 5% owned):</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="border-top: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-weight: normal; font-style: normal"><SUP>TH</SUP> Element Tracking, LLC</FONT></P>
                                                                 <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: normal 7.5pt Times New Roman, Times, Serif">Boston, MA</FONT></P></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">Business products and services</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">January 2015</TD>
    <TD STYLE="border-top: Black 1pt solid">14% promissory note due 5/18 <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-weight: normal; font-style: normal"><SUP>(2)</SUP></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Non-Affiliate Investments (represents 1.4% of total investments at fair value)</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Total Investment in Portfolio Securities</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;15,289&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,648</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">Temporary Cash Investments</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: bottom; text-align: left">U.S. Treasury Bill</TD>
    <TD STYLE="text-align: center; vertical-align: top">Government</TD>
    <TD STYLE="text-align: center; vertical-align: top">December 2018</TD>
    <TD STYLE="vertical-align: bottom">UST 0% 1/20</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,991&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;28,991&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,991</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Temporary Cash Investments (represents 41.6% of total investments at fair value)</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;28,991
    &nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,991</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Total Investments</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;44,280&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;69,639</TD></TR>
</TABLE>
<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center">
</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 2%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(1) </SUP></FONT></TD>
    <TD STYLE="line-height: normal; width: 98%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt">See Note 3 to the financial statements, Valuation of Investments.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(2) </SUP></FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">Income-producing.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(3) </SUP></FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">Majority owned investments are generally defined under the 1940 Act 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="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(4) </SUP></FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">Affiliate investments are generally defined under the 1940 Act 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: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 9pt Sans-Serif; margin: 0 215.3pt 0 13.5pt; text-align: center; color: Red"></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 62pt 0 0.75in; text-align: center; text-indent: 0.2pt"><FONT STYLE="font-style: normal; font-weight: normal; letter-spacing: -0.05pt">The
accompanying notes are an integral part of these financial statements.</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 62pt 0 0.75in; text-align: center; text-indent: 0.2pt"><FONT STYLE="font-style: normal; font-weight: normal; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

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<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0.2pt 143.65pt 0; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">SCHEDULE
OF INVESTMENTS </FONT>&ndash; <FONT STYLE="letter-spacing: -0.1pt">(Continued)</FONT></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><B>DECEMBER
31, 2019</B></FONT></P>

<P STYLE="font: italic bold 10pt/11.5pt Times New Roman, Times, Serif; margin: 0 222.5pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">(in
thousands, except share data)</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Except
for our holding of shares of MVC Capital, Inc. (&ldquo;MVC&rdquo;), substantially all of our portfolio securities are restricted
from public sale without prior registration under the Securities Act of 1933 (hereafter, the &ldquo;Securities Act&rdquo;) or other
relevant regulatory authority. We negotiate certain aspects </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the method and timing
of the disposition of our investment in each portfolio company, including registration rights and related </FONT>costs.</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As</FONT>
a <FONT STYLE="letter-spacing: -0.05pt">BDC, we</FONT> may invest up to <FONT STYLE="letter-spacing: -0.05pt">30% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
assets in non-qualifying portfolio investments, as permitted by the 1940 Act. Specifically,</FONT> we <FONT STYLE="letter-spacing: -0.05pt">may
invest up to 30% of our assets </FONT>in <FONT STYLE="letter-spacing: -0.05pt">entities that are not considered &ldquo;eligible
portfolio companies&rdquo; (as defined in the 1940 Act), including companies located outside of the United States, entities that
are operating pursuant to certain exceptions under the 1940 Act, and publicly- traded entities with </FONT>a <FONT STYLE="letter-spacing: -0.05pt">market
capitalization exceeding $250 million. As of December 31, 2019, we had invested 88.8% of our assets </FONT>in <FONT STYLE="letter-spacing: -0.05pt">securities
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">portfolio companies that constituted qualifying investments under the 1940 Act.
As of December 31, 2019, except for our shares</FONT> of <FONT STYLE="letter-spacing: -0.05pt">MVC, </FONT>all of our <FONT STYLE="letter-spacing: -0.05pt">investments
are</FONT> in <FONT STYLE="letter-spacing: -0.05pt">enterprises that are considered eligible portfolio companies under the 1940
Act. We provide significant managerial assistance </FONT>to <FONT STYLE="letter-spacing: -0.05pt">portfolio companies that comprise
85.4% of the total value of the investments </FONT>in <FONT STYLE="letter-spacing: -0.05pt">portfolio securities as of December
31, 2019.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
are classified as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">&ldquo;non-diversified&rdquo; investment company under</FONT>
the 1940 <FONT STYLE="letter-spacing: -0.05pt">Act, which</FONT> means we <FONT STYLE="letter-spacing: -0.05pt">are not limited
in the proportion of our assets that may be invested in the securities of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">single
user. The value of one segment called &ldquo;Shipping products and services&rdquo; includes one portfolio company and was 57.6%
of our net asset value, 35.3% of our total assets and 65.2% of our investments in portfolio company securities (at fair value)
as of December 31, 2019. The value of one segment called &ldquo;Energy&rdquo; includes one portfolio company and was 17.4% of our
net </FONT>asset value, <FONT STYLE="letter-spacing: -0.05pt">10.7% of our total assets and 19.7% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
investments in portfolio company securities (at fair value) as of December 31, 2019.Changes in business or industry trends or in
the financial condition, results of operations, or the market&rsquo;s assessment </FONT>of <FONT STYLE="letter-spacing: -0.05pt">any
single portfolio company will affect the net asset value and the market price </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
common stock </FONT>to a <FONT STYLE="letter-spacing: -0.05pt">greater extent than would be the case if we were </FONT>a <FONT STYLE="letter-spacing: -0.05pt">&ldquo;diversified&rdquo;
company holding numerous investments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Our investments
</FONT>in <FONT STYLE="letter-spacing: -0.05pt">portfolio securities consist </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
following types of securities as of December 31, 2019 </FONT>(in <FONT STYLE="letter-spacing: -0.05pt">thousands):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0 0 0 29.85pt; text-align: center; color: Red"><FONT STYLE="letter-spacing: -0.05pt"><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 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 Percentage of</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">Net Assets</P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; text-align: left">Common stock</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">7,262</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">31,671</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">68.9</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Limited liability company investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">7,050</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17.4</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">Secured and subordinated debt</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">977</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">977</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">2.1</TD><TD STYLE="text-align: left; padding-bottom: 1pt">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; 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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">15,289</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">40,648</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">88.4</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">%</TD></TR>
</TABLE>



<P STYLE="font: 9pt Sans-Serif; margin: 0 0 0 29.85pt; text-align: center; color: Red"><FONT STYLE="letter-spacing: -0.05pt"><B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0 29.85pt; text-indent: 499.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">The following
</FONT>is a <FONT STYLE="letter-spacing: -0.05pt">summary by industry of the Fund&rsquo;s investments in portfolio securities as
of December 31, 2019 (in thousands):</FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 3.7pt 0 0 29.85pt; color: Red"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Sans-Serif; margin: 3.7pt 0 0 29.85pt; color: Red"><B></B></P>

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




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

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 62pt 0 0"><FONT STYLE="font-weight: normal; letter-spacing: -0.05pt"><BR STYLE="clear: both">
</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 62pt 0 0; text-align: center"><FONT STYLE="font-style: normal; font-weight: normal; letter-spacing: -0.05pt"></FONT></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; background-color: White">
    <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; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; font-style: normal; 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 <FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><B><U STYLE="text-decoration: none"></U></B></FONT></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%; text-align: left">Shipping products and services</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">26,500</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">57.6</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Energy</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17.4</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Financial services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,171</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">11.2</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Business products and services</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">977</TD><TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">2.1</TD><TD STYLE="text-align: left; padding-bottom: 1pt">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">40,648</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">88.4</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">%</TD></TR>
</TABLE>
<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 62pt 0 0; text-align: center"><FONT STYLE="font-style: normal; font-weight: normal; letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin: 0 62pt 0 0; text-align: center"><FONT STYLE="font-style: normal; font-weight: normal; letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="font-style: normal; font-weight: normal; letter-spacing: -0.05pt">The
accompanying notes are an integral part of these financial statements.</FONT></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"><B>&nbsp;</B></FONT></P>


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<P STYLE="font: 10pt 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>


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<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, 2018</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>

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<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: left; vertical-align: bottom">Name and location of</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Date of Initial</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Cost of</TD>
    <TD STYLE="text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: bottom">Fair</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 38%; text-align: left; vertical-align: bottom">Portfolio&nbsp;Company</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 6%; text-align: center; vertical-align: bottom">Industry</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 9%; text-align: center; vertical-align: bottom">Investment</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 18%; text-align: center; vertical-align: bottom">Investment</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 6%; text-align: center; vertical-align: bottom">Principal</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; width: 9%; text-align: center; vertical-align: bottom">Investment</TD>
    <TD STYLE="width: 1%; border-bottom: Black 1pt solid; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; width: 11%; vertical-align: bottom">Value<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-style: normal"><B><U STYLE="text-decoration: none"><SUP STYLE="text-decoration: none">(1)</SUP></U></B></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Control Investments:&nbsp;&nbsp;Majority-owned <FONT STYLE="font: normal 7pt Times New Roman, Times, Serif"><B><SUP>(3)</SUP></B></FONT><B><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-style: normal">:</FONT></B></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 9pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: bold 9pt Arial, Helvetica, Sans-Serif; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left"><P STYLE="margin-top: 0; margin-bottom: 0">Equus Energy, LLC</P>
                                 <P STYLE="margin-top: 0; margin-bottom: 0">Houston, TX</P></TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;Energy&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;December 2011&nbsp;</TD>
    <TD>&nbsp;Member interest (100%)&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;7,050&nbsp;&nbsp; </TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;9,000</TD></TR>
<TR STYLE="vertical-align: top; background-color: White">
    <TD STYLE="text-align: left"><P STYLE="margin-top: 0; margin-bottom: 0">Equus Media Development Company, LLC</P>
                                 <P STYLE="margin-top: 0; margin-bottom: 0">Houston, TX</P></TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;Media&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;January 2007&nbsp;</TD>
    <TD>&nbsp;Member interest (100%)&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,000&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;210</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left">Total Control Investments: Majority-owned (represents 14.9% of total investments at fair value)</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;&nbsp;&nbsp;10,050&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,210</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">Affiliate Investments <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-style: normal"><B><SUP>(4)</SUP>:</B></FONT></TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="border-top-color: Black; border-top-width: 0.5pt"><P STYLE="margin-top: 0; margin-bottom: 0">PalletOne, Inc.</P>
                                                                 <P STYLE="margin-top: 0; margin-bottom: 0">Bartow, FL</P></TD>
    <TD STYLE="border-top-color: Black; border-top-width: 0.5pt; text-align: center; vertical-align: top">&nbsp;Shipping products and services&nbsp;</TD>
    <TD STYLE="border-top-color: Black; border-top-width: 0.5pt; text-align: center; vertical-align: top">&nbsp;October 2001&nbsp;</TD>
    <TD STYLE="border-top-color: Black; border-top-width: 0.5pt">&nbsp;350,000&nbsp;shares&nbsp;of&nbsp;common stock (18.7%)&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; text-align: right; border-top-color: Black; border-top-width: 0.5pt; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;350&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="text-align: right; border-top-color: Black; border-top-width: 0.5pt; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;20,500</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left">Total Affiliate Investments (represents 33.1% of total investments at fair value)</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 4pt; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;350&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;20,500</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 1pt solid">Non-Affiliate Investments - Related Party (less than 5% owned):</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: White">
    <TD STYLE="vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0">MVC Capital, Inc.</P>
                                    <P STYLE="margin-top: 0; margin-bottom: 0">Purchase, NY</P></TD>
    <TD STYLE="text-align: center; vertical-align: top">Financial services</TD>
    <TD STYLE="text-align: center; vertical-align: top">May 2014</TD>
    <TD STYLE="vertical-align: top">527,138 shares of common stock (1.7%)</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;&nbsp;6,579&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="vertical-align: top; text-align: right">&nbsp;&nbsp;&nbsp;4,328</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Non-Affiliate Investments - Related Party (represents 7.0% of total investments at fair value)</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;6,579&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;4,328</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-bottom: Black 0.5pt solid">Non-Affiliate Investments (less than 5% owned):</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top; background-color: rgb(204,238,255)">
    <TD STYLE="border-top: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0">5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-weight: normal; font-style: normal"><SUP>TH</SUP> Element Tracking, LLC</FONT></P>
                                                                 <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font: normal 7.5pt Times New Roman, Times, Serif">Boston, MA</FONT></P></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">Business products and services</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">January 2015</TD>
    <TD STYLE="border-top: Black 1pt solid">14% promissory note due 5/18 <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; font-weight: normal; font-style: normal"><SUP>(2)</SUP></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="border-top: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Non-Affiliate Investments (represents 1.5% of total investments at fair value)</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;977</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Total Investment in Portfolio Securities</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;17,956&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35,015</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">Temporary Cash Investments</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: right; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD STYLE="vertical-align: bottom; text-align: left">U.S. Treasury Bill</TD>
    <TD STYLE="text-align: center; vertical-align: top">Government</TD>
    <TD STYLE="text-align: center; vertical-align: top">December 2018</TD>
    <TD STYLE="vertical-align: bottom">UST 0% 1/19</TD>
    <TD STYLE="text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,981&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;26,981&nbsp;&nbsp;</TD>
    <TD STYLE="text-align: center; vertical-align: top">$</TD>
    <TD STYLE="vertical-align: top; border-bottom: Black 0.5pt solid; text-align: right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,981</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD COLSPAN="4" STYLE="font-weight: bold; border-top: Black 1pt solid; border-bottom: Black 1pt solid">Total Temporary Cash Investments (represents 43.5% of total investments at fair value)</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;26,981&nbsp;&nbsp;</TD>
    <TD STYLE="border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,981</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">Total Investments</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;44,937&nbsp;&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: center; vertical-align: top">$</TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;61,996</TD></TR>
</TABLE>
<P STYLE="font: italic bold 10pt/11.45pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: italic bold 10pt/11.45pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: italic bold 10pt/11.45pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: italic 10pt/11.45pt Times New Roman, Times, Serif; margin: 0 215.3pt 0 0; text-align: center"><FONT STYLE="font-style: normal; font-weight: normal"></FONT></P>

<P STYLE="font: italic 10pt/11.45pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"><FONT STYLE="font-style: normal; font-weight: normal"></FONT></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 0 0 6.3pt"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%"><TR STYLE="vertical-align: top"><TD STYLE="width: 2%; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><SUP>(1) </SUP></FONT></TD>
    <TD STYLE="width: 98%; line-height: normal"><FONT STYLE="font: 7.5pt 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="line-height: 115%"><FONT STYLE="font: 7.5pt/115% Times New Roman, Times, Serif"><SUP>(2) </SUP></FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 7.5pt/115% Times New Roman, Times, Serif">Non-income-producing.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 7.5pt/115% Times New Roman, Times, Serif"><SUP>(3) </SUP></FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 7.5pt/115% Times New Roman, Times, Serif">Majority owned investments are generally defined under the 1940 Act 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="line-height: 115%"><FONT STYLE="font: 7.5pt/115% Times New Roman, Times, Serif"><SUP>(4) </SUP></FONT></TD>
    <TD STYLE="line-height: 115%"><FONT STYLE="font: 7.5pt/115% Times New Roman, Times, Serif">Affiliate investments are generally defined under the 1940 Act 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="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR></TABLE>


<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">The
accompanying notes are an integral part of these financial statements.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center">&nbsp;</P>


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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0.2pt 143.65pt 0; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">SCHEDULE
OF INVESTMENTS </FONT>&ndash; <FONT STYLE="letter-spacing: -0.1pt">(Continued)</FONT></P>

<P STYLE="font: 10pt/11.5pt Times New Roman, Times, Serif; margin: 0 143.7pt 0 143.65pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><B>DECEMBER
31, 2018</B></FONT></P>

<P STYLE="font: italic bold 10pt/11.5pt Times New Roman, Times, Serif; margin: 0 222.5pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">(in
thousands, except share data)</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Except
for our holding of shares of MVC, substantially all of our portfolio securities are restricted from public sale without prior registration
under the Securities Act or other relevant regulatory authority. We negotiate certain aspects </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
method and timing of the disposition of our investment in each portfolio company, including registration rights and related </FONT>costs.</P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As</FONT>
a <FONT STYLE="letter-spacing: -0.05pt">BDC, we</FONT> may invest up to <FONT STYLE="letter-spacing: -0.05pt">30% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
assets in non-qualifying portfolio investments, as permitted by the 1940 Act. Specifically,</FONT> we <FONT STYLE="letter-spacing: -0.05pt">may
invest up to 30% of our assets </FONT>in <FONT STYLE="letter-spacing: -0.05pt">entities that are not considered &ldquo;eligible
portfolio companies&rdquo; (as defined in the 1940 Act), including companies located outside of the United States, entities that
are operating pursuant to certain exceptions under the 1940 Act, and publicly- traded entities with </FONT>a <FONT STYLE="letter-spacing: -0.05pt">market
capitalization exceeding $250 million. As of December 31, 2018, we had invested 87.5% of our assets </FONT>in <FONT STYLE="letter-spacing: -0.05pt">securities
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">portfolio companies that constituted qualifying investments under the 1940 Act.
As of December 31, 2018, except for our shares</FONT> of <FONT STYLE="letter-spacing: -0.05pt">MVC, </FONT>all of our <FONT STYLE="letter-spacing: -0.05pt">investments
are</FONT> in <FONT STYLE="letter-spacing: -0.05pt">enterprises that are considered eligible portfolio companies under the 1940
Act. We provide significant managerial assistance </FONT>to <FONT STYLE="letter-spacing: -0.05pt">portfolio companies that comprise
84.6% of the total value of the investments </FONT>in <FONT STYLE="letter-spacing: -0.05pt">portfolio securities as of December
31, 2018.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
are classified as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">&ldquo;non-diversified&rdquo; investment company under</FONT>
the 1940 <FONT STYLE="letter-spacing: -0.05pt">Act, which</FONT> means we <FONT STYLE="letter-spacing: -0.05pt">are not limited
in the proportion of our assets that may be invested in the securities of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">single
user. The value of one segment called &ldquo;Shipping products and services&rdquo; includes one portfolio company and was 47.1%
of our net asset value, 28.9% of our total assets and 58.5% of our investments in portfolio company securities (at fair value)
as of December 31, 2018. The value of one segment called &ldquo;Energy&rdquo; includes one portfolio company and </FONT>was <FONT STYLE="letter-spacing: -0.05pt">20.7%</FONT>
of our net asset value, <FONT STYLE="letter-spacing: -0.05pt">12.7% of our total assets and 25.7% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
investments in portfolio company securities (at fair value) as of December 31, 2018. Changes in business or industry trends or
in the financial condition, results of operations, or the market&rsquo;s assessment </FONT>of <FONT STYLE="letter-spacing: -0.05pt">any
single portfolio company will affect the net asset value and the market price </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
common stock </FONT>to a <FONT STYLE="letter-spacing: -0.05pt">greater extent than would be the case if we were </FONT>a <FONT STYLE="letter-spacing: -0.05pt">&ldquo;diversified&rdquo;
company holding numerous investments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">Our investments
</FONT>in <FONT STYLE="letter-spacing: -0.05pt">portfolio securities consist </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
following types of securities as of December 31, 2018 </FONT>(in <FONT STYLE="letter-spacing: -0.05pt">thousands):</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 6.5pt Times New Roman, Times, Serif; margin: 0.35pt 0 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-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; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; font-style: normal; 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 <FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><B><U STYLE="text-decoration: none"></U></B></FONT></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: 46%; text-align: left">Common stock</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">6,929</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">24,828</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">57.1</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Limited liability company investments</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">10,050</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,210</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">21.2</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Secured and subordinated debt</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">977</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">977</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">2.2</TD><TD STYLE="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 2.5pt">Total</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">17,956</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">35,015</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">80.5</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">%</TD></TR>
</TABLE>
<P STYLE="font: 6.5pt Times New Roman, Times, Serif; margin: 0.35pt 0 0"></P>

<P STYLE="font: 6.5pt Times New Roman, Times, Serif; margin: 0.35pt 0 0"></P>

<P STYLE="font: 4pt Times New Roman, Times, Serif; margin: 0.25pt 0 0 99pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">The following
</FONT>is a <FONT STYLE="letter-spacing: -0.05pt">summary by industry of the Fund&rsquo;s investments in portfolio securities as
of December 31, 2018 (in thousands):</FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 3.7pt 0 0 1.25in; color: Red"><FONT STYLE="letter-spacing: -0.05pt"><B></B></FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Industry</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-weight: bold; font-style: normal; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; font-style: normal; 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 <FONT STYLE="font: normal 10pt Times New Roman, Times, Serif"><B><U STYLE="text-decoration: none"></U></B></FONT></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%; text-align: left">Shipping products and services</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">20,500</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">47.1</TD><TD STYLE="width: 1%; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>Energy</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9,000</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20.7</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Financial services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,328</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">9.9</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Business products and services</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">977</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2.2</TD><TD STYLE="text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 1pt">Media</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">210</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">0.6</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">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">35,015</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">80.5</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: left">%</TD></TR>
</TABLE>
<P STYLE="font: 9pt Sans-Serif; margin: 3.7pt 0 0 1.25in; color: Red"><FONT STYLE="letter-spacing: -0.05pt"><B></B></FONT></P>

<P STYLE="font: 5pt Times New Roman, Times, Serif; margin: 0.5pt 0 0">&nbsp;</P>

<P STYLE="font: 4pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 3.7pt; text-align: center; margin-bottom: 0"><FONT STYLE="letter-spacing: -0.05pt">The accompanying
notes are an integral part of these financial statements.</FONT></P>

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

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

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.35pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 222.5pt; text-align: center">&nbsp;</P>


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

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="letter-spacing: -0.05pt">EQUUS
TOTAL RETURN, INC.</FONT></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; text-align: center; margin-bottom: 0"><FONT STYLE="letter-spacing: -0.05pt">NOTES TO FINANCIAL STATEMENTS</FONT></P>

<P STYLE="font: 10pt/11.45pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><B>DECEMBER
31, 2019, 2018 AND 2017</B></FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5.3pt"></TD><TD STYLE="width: 14.15pt"><FONT STYLE="font-size: 10pt; letter-spacing: -0.05pt"><B>(1)</B></FONT></TD><TD><FONT STYLE="font-size: 10pt; letter-spacing: -0.05pt"><B>ORGANIZATION AND </B></FONT><B><FONT STYLE="font-size: 10pt; letter-spacing: -0.1pt">BUSINESS</FONT></B><B>
<FONT STYLE="font-size: 10pt; letter-spacing: -0.05pt">PURPOSE</FONT></B></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Equus
Total Return, Inc. (&ldquo;we,&rdquo; &ldquo;us,&rdquo; &ldquo;our,&rdquo; &ldquo;Equus&rdquo; the &ldquo;Company&rdquo; and the
&ldquo;Fund&rdquo;),</FONT> a <FONT STYLE="letter-spacing: -0.05pt">Delaware corporation, was formed </FONT>by <FONT STYLE="letter-spacing: -0.05pt">Equus
Investments II, L.P. </FONT>(the <FONT STYLE="letter-spacing: -0.05pt">&ldquo;Partnership&rdquo;) </FONT>on <FONT STYLE="letter-spacing: -0.05pt">August
16, 1991. On July 1, 1992, the Partnership </FONT>was <FONT STYLE="letter-spacing: -0.05pt">reorganized and all of the assets</FONT>
and <FONT STYLE="letter-spacing: -0.05pt">liabilities </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the Partnership were transferred
to the Fund in exchange for shares </FONT>of <FONT STYLE="letter-spacing: -0.05pt">common stock </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
Fund. Our shares trade on the NYSE under the symbol &lsquo;EQS&rsquo;. On August 11, 2006, our shareholders approved the change
of the Fund&rsquo;s investment strategy </FONT>to a <FONT STYLE="letter-spacing: -0.05pt">total return investment objective. This
strategy seeks </FONT>to <FONT STYLE="letter-spacing: -0.05pt">provide the highest total return, consisting of capital appreciation
and current income. </FONT>In <FONT STYLE="letter-spacing: -0.05pt">connection with this strategic investment change, the shareholders
also approved the change </FONT>of <FONT STYLE="letter-spacing: -0.05pt">name from Equus II Incorporated</FONT> to <FONT STYLE="letter-spacing: -0.05pt">Equus
Total Return, Inc.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">total enterprise value between
$5.0 million and $75.0 million, although we may engage </FONT>in <FONT STYLE="letter-spacing: -0.05pt">transactions with smaller
</FONT>or <FONT STYLE="letter-spacing: -0.05pt">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 subordinated
debt, debt convertible into common </FONT>or <FONT STYLE="letter-spacing: -0.05pt">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</FONT> and <FONT STYLE="letter-spacing: -0.05pt">sale of warrants received in connection with the financing. We seek
to achieve capital appreciation by making investments </FONT>in <FONT STYLE="letter-spacing: -0.05pt">equity and equity-oriented
securities issued</FONT> by <FONT STYLE="letter-spacing: -0.05pt">privately-owned companies in transactions negotiated directly
with such companies. Given market conditions over the past several years and the performance </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
portfolio, our Management and Board</FONT> of <FONT STYLE="letter-spacing: -0.05pt">Directors believe it prudent to continue to
review alternatives to refine and further </FONT>clarify the <FONT STYLE="letter-spacing: -0.05pt">current strategies.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
elected to be treated as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC under the 1940 Act, although our shareholders have
authorized us to withdraw this election during 2019 and the first quarter of 2020 and have done so previously in our efforts to
achieve </FONT>a <FONT STYLE="letter-spacing: -0.05pt">transformational Consolidation (see &ldquo;<I>Significant Developments </I></FONT><I>&ndash;
<FONT STYLE="letter-spacing: -0.05pt">Authorization</FONT> to <FONT STYLE="letter-spacing: -0.05pt">Withdraw BDC Election&rdquo;</FONT></I><FONT STYLE="letter-spacing: -0.05pt">
above). We currently qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">regulated investment company RIC for federal income
</FONT>tax <FONT STYLE="letter-spacing: -0.05pt">purposes </FONT>and, <FONT STYLE="letter-spacing: -0.05pt">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</FONT> of <FONT STYLE="letter-spacing: -0.05pt">which holds one
or more portfolio investments listed on our Schedules of Investments. The purpose </FONT>of <FONT STYLE="letter-spacing: -0.05pt">these
Taxable Subsidiaries is </FONT>to <FONT STYLE="letter-spacing: -0.05pt">permit us </FONT>to <FONT STYLE="letter-spacing: -0.05pt">hold
certain income-producing investments </FONT>or <FONT STYLE="letter-spacing: -0.05pt">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, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portion
of the gross income of these income-producing investments </FONT>or <FONT STYLE="letter-spacing: -0.05pt">of any LLC (or other
pass-through entity) portfolio investment, as the case may be, would flow through directly to </FONT>us <FONT STYLE="letter-spacing: -0.05pt">for
the 90% test. To the extent that such income did not consist </FONT>of <FONT STYLE="letter-spacing: -0.05pt">investment income,
it could jeopardize our ability to qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>is
<FONT STYLE="letter-spacing: -0.05pt">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 </FONT>may
<FONT STYLE="letter-spacing: -0.05pt">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.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

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<TD STYLE="width: 5.3pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="letter-spacing: -0.05pt">(2)</FONT></TD><TD><FONT STYLE="letter-spacing: -0.05pt">LIQUIDITY AND FINANCING ARRANGEMENTS</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
of December 31, 2019, we had cash and cash equivalents of $4.0 million. </FONT>We <FONT STYLE="letter-spacing: -0.05pt">had $40.6
million of our net assets of $46.0 million invested in portfolio securities. We also had $29.3 million of temporary cash investments
and restricted cash, 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, $29.0 million was invested in U.S. Treasury bills and $0.3 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 matured</FONT></P>

<P STYLE="font: 10pt/11.45pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">January
</FONT>7, <FONT STYLE="letter-spacing: -0.05pt">2020 </FONT>and <FONT STYLE="letter-spacing: -0.05pt">we subsequently repaid this
margin loan. The margin interest was paid</FONT> on <FONT STYLE="letter-spacing: -0.05pt">February 5, 2020.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
of December 31, 2018, we had cash and cash equivalents of $7.4 million. We had $35.0 million</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our
net assets </FONT>of <FONT STYLE="letter-spacing: -0.05pt">$43.5 million invested</FONT> in <FONT STYLE="letter-spacing: -0.05pt">portfolio
securities.</FONT> We <FONT STYLE="letter-spacing: -0.05pt">also had $27.3 million of temporary </FONT>cash <FONT STYLE="letter-spacing: -0.05pt">investments
</FONT>and <FONT STYLE="letter-spacing: -0.05pt">restricted cash, including primarily the proceeds</FONT> of a <FONT STYLE="letter-spacing: -0.05pt">quarter-end
margin loan that </FONT>we <FONT STYLE="letter-spacing: -0.05pt">incurred </FONT>to <FONT STYLE="letter-spacing: -0.05pt">maintain
the diversification requirements applicable </FONT>to a <FONT STYLE="letter-spacing: -0.05pt">RIC. </FONT>Of <FONT STYLE="letter-spacing: -0.05pt">this
amount, $27.0 million was invested</FONT> in <FONT STYLE="letter-spacing: -0.05pt">U.S. Treasury bills and $0.3 million represented
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">required 1% brokerage margin deposit. These securities were held by </FONT>a <FONT STYLE="letter-spacing: -0.05pt">securities
brokerage firm and pledged along with other assets to secure repayment of the margin loan. The U.S. Treasury bills were sold </FONT>on
<FONT STYLE="letter-spacing: -0.05pt">January </FONT>2, <FONT STYLE="letter-spacing: -0.05pt">2019 </FONT>and <FONT STYLE="letter-spacing: -0.05pt">we
subsequently repaid this margin loan. The margin interest was paid</FONT> on <FONT STYLE="letter-spacing: -0.05pt">February 5,
2019.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 205.3pt 0 207.15pt; text-align: center">&nbsp;</P>


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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.1pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">During
2019 and 2018, we borrowed sufficient funds </FONT>to <FONT STYLE="letter-spacing: -0.05pt">maintain the Fund&rsquo;s RIC status
by utilizing </FONT>a <FONT STYLE="letter-spacing: -0.05pt">margin account with </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>no <FONT STYLE="letter-spacing: -0.05pt">longer qualify </FONT>as a <FONT STYLE="letter-spacing: -0.05pt">RIC.
We would then be subject to corporate income tax on the Fund&rsquo;s net investment income and realized capital gains, and distributions
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">stockholders would be subject to income tax as ordinary dividends. </FONT>If <FONT STYLE="letter-spacing: -0.05pt">we
continue </FONT>to <FONT STYLE="letter-spacing: -0.05pt">be</FONT> a <FONT STYLE="letter-spacing: -0.05pt">BDC, failure to continue
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC could be material
to us and our stockholders.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

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<TD STYLE="width: 5.3pt"></TD><TD STYLE="width: 14.2pt"><FONT STYLE="letter-spacing: -0.05pt">(3)</FONT></TD><TD><FONT STYLE="letter-spacing: -0.05pt">SIGNIFICANT ACCOUNTING POLICIES</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 29.85pt"><FONT STYLE="letter-spacing: -0.05pt">The following
is</FONT> a <FONT STYLE="letter-spacing: -0.05pt">summary of significant accounting policies followed by the Fund in the preparation
of its financial statements:</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><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 </FONT>in <FONT STYLE="letter-spacing: -0.05pt">the financial statements. Although
we believe </FONT>the estimates <FONT STYLE="letter-spacing: -0.05pt">and assumptions used in preparing these financial statements
and related notes are reasonable in light</FONT> of <FONT STYLE="letter-spacing: -0.05pt">known facts and circumstances, actual
results could differ from those estimates.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.25pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><B>Valuation
</B></FONT><B>of <FONT STYLE="letter-spacing: -0.05pt">Investments&mdash;</FONT></B><FONT STYLE="letter-spacing: -0.05pt">For most</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">our investments, market quotations are not available. With respect to investments for
which market quotations are not readily available </FONT>or <FONT STYLE="letter-spacing: -0.05pt">when such market quotations are
deemed not to represent fair value, our Board has approved</FONT> a <FONT STYLE="letter-spacing: -0.05pt">multi-step valuation
process each quarter, as described below:</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.1pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="letter-spacing: -0.05pt">1.</FONT></TD><TD><FONT STYLE="letter-spacing: -0.05pt">Each portfolio company</FONT> or <FONT STYLE="letter-spacing: -0.05pt">investment is
reviewed by our investment professionals;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.1pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="letter-spacing: -0.05pt">2.</FONT></TD><TD STYLE="text-align: justify; padding-right: 27.65pt"><FONT STYLE="letter-spacing: -0.05pt">With respect to investments with</FONT>
a <FONT STYLE="letter-spacing: -0.05pt">fair value exceeding $2.5 million that have been held for more than one year, we engage
independent valuation firms to assist our investment professionals. These independent valuation firms conduct independent valuations
and make their own independent assessments;</FONT></TD></TR></TABLE>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.1pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="letter-spacing: -0.05pt">3.</FONT></TD><TD STYLE="padding-right: 7.65pt"><FONT STYLE="letter-spacing: -0.05pt">Our Management produces </FONT>a <FONT STYLE="letter-spacing: -0.05pt">report
that summarized each of our portfolio investments and recommends </FONT>a <FONT STYLE="letter-spacing: -0.05pt">fair value of each
such investment </FONT>as of <FONT STYLE="letter-spacing: -0.05pt">the date </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
report;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.1pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="letter-spacing: -0.05pt">4.</FONT></TD><TD STYLE="padding-right: 16.05pt"><FONT STYLE="letter-spacing: -0.05pt">The Audit Committee </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our
Board reviews and discusses the preliminary valuation </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our portfolio investments
as recommended by Management in their report and any reports or recommendations of the independent valuation firms, and then approves
and recommends the fair values of our investments so determined to our Board for final approval; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36.1pt"></TD><TD STYLE="width: 22.5pt"><FONT STYLE="letter-spacing: -0.05pt">5.</FONT></TD><TD STYLE="padding-right: 7.65pt"><FONT STYLE="letter-spacing: -0.05pt">The Board discusses valuations and determines the fair
value of each portfolio investment in good faith based </FONT>on <FONT STYLE="letter-spacing: -0.05pt">the input of our Management,
the respective independent valuation firm, as applicable, and the Audit Committee.</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.5pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.1pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">During
the first twelve months after an investment</FONT> is <FONT STYLE="letter-spacing: -0.05pt">made, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">rely
</FONT>on <FONT STYLE="letter-spacing: -0.05pt">the original investment amount to determine the fair value unless significant developments
have occurred during this twelve month period which would indicate </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material effect
on the portfolio company (such as results </FONT>of <FONT STYLE="letter-spacing: -0.05pt">operations or changes in general market
conditions).</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Investments
are valued utilizing</FONT> a <FONT STYLE="letter-spacing: -0.05pt">yield analysis, enterprise value (&ldquo;EV&rdquo;) analysis,
net asset value analysis, liquidation analysis, discounted cash flow analysis, </FONT>or a <FONT STYLE="letter-spacing: -0.05pt">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</FONT> a <FONT STYLE="letter-spacing: -0.05pt">portfolio
company is first determined and allocated over the portfolio company&rsquo;s securities in order of their preference relative </FONT>to
<FONT STYLE="letter-spacing: -0.05pt">one</FONT> another <FONT STYLE="letter-spacing: -0.05pt">(i.e., &ldquo;waterfall&rdquo; allocation).
To determine the EV, we typically use</FONT> a <FONT STYLE="letter-spacing: -0.05pt">market multiples approach that considers relevant
and applicable market trading data </FONT>of <FONT STYLE="letter-spacing: -0.05pt">guideline public companies, transaction metrics
from precedent M&amp;A transactions and/or </FONT>a <FONT STYLE="letter-spacing: -0.05pt">discounted cash flow analysis. The net
asset value analysis is used </FONT>to <FONT STYLE="letter-spacing: -0.05pt">derive </FONT>a <FONT STYLE="letter-spacing: -0.05pt">value
of an underlying investment (such as real estate property) by dividing </FONT>a <FONT STYLE="letter-spacing: -0.05pt">relevant
earnings stream </FONT>by <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>is <FONT STYLE="letter-spacing: -0.05pt">intended to approximate the net recovery value of an investment
based on, among other things, assumptions regarding liquidation proceeds based on </FONT>a <FONT STYLE="letter-spacing: -0.05pt">hypothetical
liquidation of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio company&rsquo;s assets. The discounted cash flow analysis
uses valuation techniques </FONT>to <FONT STYLE="letter-spacing: -0.05pt">convert future cash flows or earnings to </FONT>a <FONT STYLE="letter-spacing: -0.05pt">range
of fair values from which</FONT> a <FONT STYLE="letter-spacing: -0.05pt">single estimate may </FONT>be <FONT STYLE="letter-spacing: -0.05pt">derived
utilizing an appropriate discount rate. The measurement is based on the net present value indicated by current market expectations
about those future amounts.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">In
applying these methodologies, additional factors that we consider in <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">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 </FONT> of peer companies; the principal
market; and enterprise values, among other factors. 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.</FONT>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.6pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Our
general intent is to hold our loans </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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</FONT> of <FONT STYLE="letter-spacing: -0.05pt">value </FONT>to <FONT STYLE="letter-spacing: -0.05pt">the
debt instrument, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">perform</FONT> a <FONT STYLE="letter-spacing: -0.05pt">yield analysis
assuming </FONT>a <FONT STYLE="letter-spacing: -0.05pt">hypothetical current sale of the security to determine if </FONT>a <FONT STYLE="letter-spacing: -0.05pt">debt
security has been impaired. The yield analysis considers changes in interest rates and changes in leverage levels </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
portfolio company as compared to the market interest rates and leverage levels. Assuming the credit quality</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the
portfolio company remains stable, the Fund will use the value determined by the yield analysis as the fair value for that security
if less than the cost </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the investment.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
record unrealized depreciation on investments when we determine that the fair value of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><B>Fair
Value Measurement&mdash;</B>Fair value is the price that would be received to sell an asset</FONT> or <FONT STYLE="letter-spacing: -0.05pt">paid</FONT>
to <FONT STYLE="letter-spacing: -0.05pt">transfer </FONT>a <FONT STYLE="letter-spacing: -0.05pt">liability in an orderly transaction
between market participants at the measurement date and sets out </FONT>a <FONT STYLE="letter-spacing: -0.05pt">fair value hierarchy.
The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets </FONT>or <FONT STYLE="letter-spacing: -0.05pt">liabilities
(Level</FONT> 1) <FONT STYLE="letter-spacing: -0.05pt">and </FONT>the <FONT STYLE="letter-spacing: -0.05pt">lowest priority to
unobservable inputs (Level 3). Inputs are broadly defined as assumptions market participants would use in pricing an asset or liability.
The three levels of the fair value hierarchy are described below:</FONT></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Level
1&mdash;Unadjusted quoted prices in active markets for identical assets </FONT>or <FONT STYLE="letter-spacing: -0.05pt">liabilities
that the reporting entity has the ability to access at the measurement date.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Level
2&mdash;Inputs other than quoted prices within Level </FONT>1 <FONT STYLE="letter-spacing: -0.05pt">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 Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.65pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Level
3&mdash;Inputs are unobservable for the asset or liability and include situations where there is little, </FONT>if <FONT STYLE="letter-spacing: -0.05pt">any,
market activity for </FONT>the asset or <FONT STYLE="letter-spacing: -0.05pt">liability. The inputs into the determination</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">fair value </FONT>are <FONT STYLE="letter-spacing: -0.05pt">based upon the best information
under the circumstances and may require significant management judgment or estimation.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">In
certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In </FONT>such
<FONT STYLE="letter-spacing: -0.05pt">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</FONT> a <FONT STYLE="letter-spacing: -0.05pt">particular
input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment.</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.65pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Investments
for which prices are not observable are generally private investments in the debt and equity securities of operating companies.
One of the primary valuation methods used</FONT> to <FONT STYLE="letter-spacing: -0.05pt">estimate the fair value of these Level
</FONT>3 <FONT STYLE="letter-spacing: -0.05pt">investments is the discounted cash flow method (although </FONT>a <FONT STYLE="letter-spacing: -0.05pt">liquidation
analysis, option theoretical, or other methodology may be used when more appropriate). The discounted cash flow approach to determine
fair value (or </FONT>a <FONT STYLE="letter-spacing: -0.05pt">range </FONT>of <FONT STYLE="letter-spacing: -0.05pt">fair </FONT>values)
<FONT STYLE="letter-spacing: -0.05pt">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 </FONT>be <FONT STYLE="letter-spacing: -0.05pt">the most reasonable and probable is used as the fair value of the investment.
The determination </FONT>of <FONT STYLE="letter-spacing: -0.05pt">fair value using these methodologies may take into consideration
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">range of factors including, but not limited </FONT>to, the <FONT STYLE="letter-spacing: -0.05pt">price</FONT>
at <FONT STYLE="letter-spacing: -0.05pt">which the investment was acquired, the nature of the investment, local market conditions,
trading values </FONT>on <FONT STYLE="letter-spacing: -0.05pt">public exchanges for comparable securities, current and projected
operating performance, financing transactions subsequent to the acquisition</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the
investment and anticipated financing transactions after the valuation date</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.65pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-indent: 24.5pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">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,</FONT>
<FONT STYLE="letter-spacing: -0.1pt">market</FONT> <FONT STYLE="letter-spacing: -0.05pt">valuation multiples </FONT>of <FONT STYLE="letter-spacing: -0.05pt">publicly-traded
firms engaged in businesses similar to those of the portfolio companies. The market approach to determining the fair value </FONT>of
a <FONT STYLE="letter-spacing: -0.05pt">portfolio company&rsquo;s equity security (or securities) will typically involve: (1) applying
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">the portfolio company&rsquo;s trailing twelve months (or current</FONT> year <FONT STYLE="letter-spacing: -0.05pt">projected)
EBITDA, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">low to high range of enterprise value to EBITDA multiples that are derived
from an analysis of publicly-traded comparable companies,</FONT> in order to <FONT STYLE="letter-spacing: -0.05pt">arrive</FONT>
at a <FONT STYLE="letter-spacing: -0.05pt">range</FONT> of <FONT STYLE="letter-spacing: -0.05pt">enterprise values for </FONT>the
<FONT STYLE="letter-spacing: -0.05pt">portfolio company;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">(2) subtracting
from the range of calculated enterprise values the outstanding balances </FONT>of <FONT STYLE="letter-spacing: -0.05pt">any debt
or equity securities that would be senior in right of payment to the equity securities we hold; and (3) multiplying the range </FONT>of
<FONT STYLE="letter-spacing: -0.05pt">equity values derived therefrom by our ownership share of such equity tranche in order to
arrive at</FONT> a <FONT STYLE="letter-spacing: -0.05pt">range of fair values for our equity security (or securities). Application
of these valuation methodologies involves </FONT>a <FONT STYLE="letter-spacing: -0.05pt">significant degree of judgment </FONT>by
<FONT STYLE="letter-spacing: -0.05pt">Management.</FONT></P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.2pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Due
to the inherent uncertainty of determining the fair value </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Level </FONT>3 <FONT STYLE="letter-spacing: -0.05pt">investments
that</FONT> do <FONT STYLE="letter-spacing: -0.05pt">not have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">readily available
market value, the fair value of the investments may differ significantly from the values that would have been used had </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">ready market existed for </FONT>such <FONT STYLE="letter-spacing: -0.05pt">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</FONT> to <FONT STYLE="letter-spacing: -0.05pt">liquidate
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">portfolio investment</FONT> in a <FONT STYLE="letter-spacing: -0.05pt">forced or
liquidation sale, we might realize significantly less than the value at which such investment had previously been recorded. With
respect to Level </FONT>3 <FONT STYLE="letter-spacing: -0.05pt">investments, where sufficient market quotations are not readily
available or for which</FONT> no <FONT STYLE="letter-spacing: -0.05pt">or an insufficient number of indicative prices from pricing
services or brokers </FONT>or <FONT STYLE="letter-spacing: -0.05pt">dealers have been received, we undertake, on </FONT>a <FONT STYLE="letter-spacing: -0.05pt">quarterly
basis, our valuation process as described above.</FONT></P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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, </FONT>2 <FONT STYLE="letter-spacing: -0.05pt">and</FONT> 3 <FONT STYLE="letter-spacing: -0.05pt">for the years
ended December 31, 2019 and 2018.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 25.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
of December 31, 2019, investments measured at fair value on</FONT> a <FONT STYLE="letter-spacing: -0.05pt">recurring basis are
categorized</FONT> in <FONT STYLE="letter-spacing: -0.05pt">the tables below based on the lowest level of significant input to
the valuations:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 25.9pt 0 6.3pt; text-indent: 24.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="4">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements as of December 31, 2019</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; font-style: italic">(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">Total</TD><TD STYLE="font-size: 8pt; 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">Quoted Prices in</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Active Markets</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">for Identical</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Assets</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">(Level 1)</P></TD><TD STYLE="font-size: 8pt; 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">Significant Other</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Observable</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Inputs</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">(Level 2)</P></TD><TD STYLE="font-size: 8pt; 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">Significant</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Unobservable</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Inputs</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">(Level 3)</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Assets</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: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;Investments:</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: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left; padding-left: 10pt">Control investments</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">8,000</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">8,000</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">Affiliate investments</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,500</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">26,500</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">Non-affiliate investments - related party</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,171</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,171</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; padding-bottom: 1pt; padding-left: 10pt">Non-affiliate investments</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">977</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><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">977</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total investments</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,648</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,171</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">35,477</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;&nbsp;&nbsp;&nbsp;Temporary cash investments</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">28,991</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">28,991</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; padding-bottom: 2.5pt">Total investments and temporary cash investments</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">69,639</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">34,162</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">35,477</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 25.9pt 0 6.3pt; text-indent: 24.5pt"></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0 6.35pt 0 6.3pt; text-indent: -1.8pt; color: Red"><B></B></P>




<P STYLE="font: 9pt Sans-Serif; margin: 0 6.35pt 0 6.3pt; text-indent: -1.8pt; color: Red"><B></B></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 25.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">As
of December 31, 2018, investments measured at fair value on</FONT> a <FONT STYLE="letter-spacing: -0.05pt">recurring basis are
categorized</FONT> in <FONT STYLE="letter-spacing: -0.05pt">the tables below based on the lowest level of significant input to
the valuations:</FONT></P>

<P STYLE="font: 6.5pt Times New Roman, Times, Serif; margin: 0.3pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"></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>&nbsp;</TD>
    <TD COLSPAN="4">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value Measurements as of December 31, 2018</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 1pt solid; font-weight: bold; font-style: italic">(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">Total</TD><TD STYLE="font-size: 8pt; 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">Quoted Prices in</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Active Markets</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">for Identical</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Assets</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">(Level 1)</P></TD><TD STYLE="font-size: 8pt; 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">Significant Other</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Observable</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Inputs</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">(Level 2)</P></TD><TD STYLE="font-size: 8pt; 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">Significant</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Unobservable</P>
                                                                                                                  <P STYLE="margin-top: 0; margin-bottom: 0">Inputs</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">(Level 3)</P></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Assets</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: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;&nbsp;Investments:</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: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 40%; text-align: left; padding-left: 10pt">Control investments</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">9,210</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">9,210</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">Affiliate investments</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">20,500</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">20,500</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">Non-affiliate investments - related party</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,328</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,328</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; padding-bottom: 1pt; padding-left: 10pt">Non-affiliate investments</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">977</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><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">977</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Total investments</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">35,015</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">4,328</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">30,687</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;&nbsp;&nbsp;&nbsp;Temporary cash investments</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">26,981</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">26,981</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; padding-bottom: 2.5pt">Total investments and temporary cash investments</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">61,996</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">31,309</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">30,687</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-align: center; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
following table provides </FONT>a <FONT STYLE="letter-spacing: -0.05pt">reconciliation </FONT>of <FONT STYLE="letter-spacing: -0.05pt">fair
value changes during 2019 for all investments for which we determine fair value using significant unobservable (Level </FONT>3)
<FONT STYLE="letter-spacing: -0.05pt">inputs:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0 11.9pt 0 6.3pt; text-indent: -1.8pt; color: Red"><FONT STYLE="letter-spacing: -0.05pt"><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 COLSPAN="2">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="13" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair value measurements using significant unobservable inputs (Level 3)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-weight: bold; font-style: italic; border-bottom: Black 1pt solid">(in thousands)</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">Control Investments</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">Affiliate Investments</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">Non-affiliate Investments</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 40%">Fair value as of January 1, 2019</TD><TD STYLE="width: 3%">&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="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">9,210</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">20,500</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">977</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="text-align: right">$30,687</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Realized losses</TD><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">(2,789</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><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">(2,789)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Change in unrealized appreciation</TD><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">1,790</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,000</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: right">7,790</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Proceeds from sales/dispositions</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left"></TD><TD STYLE="padding-bottom: 1pt; 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">(211</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">&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: right">(211)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Fair value as of December 31, 2019</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left"></TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">8,000</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">26,500</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">977</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: right">$35,477</TD></TR>
</TABLE>



<P STYLE="font: 9pt Sans-Serif; margin: 0 11.9pt 0 6.3pt; text-indent: -1.8pt; color: Red"><FONT STYLE="letter-spacing: -0.05pt"><B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
following table provides </FONT>a <FONT STYLE="letter-spacing: -0.05pt">reconciliation </FONT>of <FONT STYLE="letter-spacing: -0.05pt">fair
value changes during 2018 for all investments for which we determine fair value using significant unobservable (Level </FONT>3)
<FONT STYLE="letter-spacing: -0.05pt">inputs:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0"><FONT STYLE="font-weight: normal">&nbsp;</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="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="13" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair value measurements using significant unobservable inputs (Level 3)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-weight: bold; font-style: italic; border-bottom: Black 1pt solid">(in thousands)</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">Control Investments</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">Affiliate Investments</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">Non-affiliate Investments</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 40%">Fair value as of January 1, 2018</TD><TD STYLE="width: 3%">&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="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">8,212</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">16,686</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">977</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="text-align: right">$25,875</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Change in unrealized appreciation</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">998</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">3,814</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,812</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding-bottom: 2.5pt">Fair value as of December 30, 2018</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">9,210</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">20,500</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">977</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: right">$30,687</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.9pt 0 6.3pt; text-indent: 24.5pt">The following table provides a reconciliation
of fair value changes during 2017 for all investments for which we determine fair value using significant unobservable (Level 3)
inputs:</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="13" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair value measurements using significant unobservable inputs (Level 3)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="5" STYLE="font-weight: bold; font-style: italic; border-bottom: Black 1pt solid">(in thousands)</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">Control Investments</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">Affiliate Investments</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">Non-affiliate Investments</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; 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: 40%">Fair value as of January 1, 2017</TD><TD STYLE="width: 3%">&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="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">6,462</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 10%; text-align: right">16,200</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">2,978</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 3%">&nbsp;</TD>
    <TD STYLE="text-align: right">$25,640</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Change in unrealized appreciation</TD><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">1,750</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">486</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: right">2,236</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Purchases of portfolio securities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&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">12</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: right">12</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Proceeds from sales/dispositions</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; 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">&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">(2,013</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: right">(2,013)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-bottom: 2.5pt">Fair value as of December 31, 2017</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">8,212</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">16,686</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">977</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: right">$25,875</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 215.3pt; text-align: center">&nbsp;</P>


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<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Fair
value measurements can be sensitive </FONT>to <FONT STYLE="letter-spacing: -0.05pt">changes in one or more </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the
valuation inputs. Changes in discount rates, EBITDA or EBITDA multiples (or revenue or revenue multiples), each in isolation, may
change the fair value of certain</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our investments. Generally, an increase/(decrease)
in market yields, discount rates, or an increase/(decrease) in EBITDA</FONT> or <FONT STYLE="letter-spacing: -0.05pt">EBITDA multiples
(or revenue or revenue</FONT> multiples) may <FONT STYLE="letter-spacing: -0.05pt">result </FONT>in a <FONT STYLE="letter-spacing: -0.05pt">corresponding
increase/(decrease), respectively, in the fair value</FONT> of <FONT STYLE="letter-spacing: -0.05pt">certain of our investments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
following table summarizes the significant non-observable inputs </FONT>in <FONT STYLE="letter-spacing: -0.05pt">the fair value
measurements of our level</FONT> 3 <FONT STYLE="letter-spacing: -0.05pt">investments</FONT> by <FONT STYLE="letter-spacing: -0.05pt">category
of investment and valuation technique as of December 31, 2019:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD>&nbsp;</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="7" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Range</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; font-style: italic; border-bottom: Black 1pt solid">(in thousands)</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Fair Value</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Valuation Techniques</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Unobservable Inputs</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Minimum</TD><TD STYLE="font-size: 8pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Maximum</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 33%; text-align: left">Secured and subordinated debt</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 8%; text-align: right">977</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 18%; text-align: center">Yield analysis</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 20%; text-align: center">Discount for lack of marketability</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font-size: 8pt; text-align: right">0</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 8pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; font-size: 8pt; text-align: right">0</TD><TD STYLE="width: 1%; font-size: 8pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Common stock</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">26,500</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">Income/Market approach</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: center">EBITDA Multiple/Discount for lack of marketability/Control premium</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">10</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">32.5</TD><TD STYLE="font-size: 8pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Limited liability company investments</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">8,000</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt"><P STYLE="margin-top: 0; margin-bottom: 0">Asset approach</P>
                                                        <P STYLE="margin-top: 0; margin-bottom: 0">Discounted cash flow; Guideline transaction method; Market approach</P></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="text-align: center; padding-bottom: 1pt"><P STYLE="margin-top: 0; margin-bottom: 0">Recovery rate</P>
                                                        <P STYLE="margin-top: 0; margin-bottom: 0">Reserve adjustment factors</P></TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">75</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">%</TD><TD STYLE="font-size: 8pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">100</TD><TD STYLE="padding-bottom: 1pt; font-size: 8pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">35,477</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="text-align: right; padding-bottom: 2.5pt">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"></P>

<P STYLE="font: 1pt Times New Roman, Times, Serif; margin: 0.4pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 6pt Times New Roman, Times, Serif; margin: 0.15pt 0 0"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Because
of the inherent uncertainty of the valuation of portfolio securities which do not have readily ascertainable market </FONT><FONT STYLE="letter-spacing: -0.1pt">values,</FONT>
<FONT STYLE="letter-spacing: -0.05pt">amounting to $37.0 million and $30.7 million as of December 31, 2019 and 2018, respectively,
our fair value determinations may materially differ from the values that would have been used had </FONT>a <FONT STYLE="letter-spacing: -0.05pt">ready
market existed for the securities.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
adjust our </FONT>net <FONT STYLE="letter-spacing: -0.05pt">asset value for the changes in the value of our publicly held securities,
</FONT>if <FONT STYLE="letter-spacing: -0.05pt">applicable, and material changes in the value</FONT> of <FONT STYLE="letter-spacing: -0.05pt">private
securities, generally determined on</FONT> a <FONT STYLE="letter-spacing: -0.05pt">quarterly basis or as announced in </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">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>.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><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</FONT> <FONT STYLE="letter-spacing: -0.1pt">realized.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><B>Investment
Transactions</B>&mdash;Investment transactions are recorded on the accrual method. Realized gains and losses on investments sold
are computed on </FONT>a <FONT STYLE="letter-spacing: -0.05pt">specific identification basis.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">We
classify our investments in accordance with the requirements </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the 1940 Act. Under
the 1940 Act, &ldquo;Control Investments&rdquo; are defined </FONT>as <FONT STYLE="letter-spacing: -0.05pt">investments in companies
in which the Fund owns more than 25% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>in <FONT STYLE="letter-spacing: -0.05pt">companies in which</FONT> we <FONT STYLE="letter-spacing: -0.05pt">own
between 5% and 25% </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the voting securities. Under the 1940 Act, &ldquo;Non-affiliate
Investments&rdquo; are defined as investments that are neither Control Investments nor Affiliate Investments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><B>Interest
and Dividend Income Recognition</B>&mdash;We record interest income, adjusted for amortization of premium and accretion of discount,
on an accrual basis to the</FONT> extent that <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>no <FONT STYLE="letter-spacing: -0.05pt">longer
collectible. We may also impair the accrued </FONT><FONT STYLE="letter-spacing: -0.1pt">interest</FONT> <FONT STYLE="letter-spacing: -0.05pt">when
we determine that all or </FONT>a <FONT STYLE="letter-spacing: -0.05pt">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</FONT> we <FONT STYLE="letter-spacing: -0.05pt">recognize any additional
interest income. We will write off uncollectible interest upon the occurrence of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">definitive
event such as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">sale, bankruptcy, or reorganization of the relevant portfolio interest.
Dividend income is recorded as dividends are declared by the portfolio company or</FONT> at <FONT STYLE="letter-spacing: -0.05pt">the
point an obligation exists for the portfolio company to make</FONT> a <FONT STYLE="letter-spacing: -0.05pt">distribution.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><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 </FONT>in <FONT STYLE="letter-spacing: -0.05pt">each loan agreement, to the principal balance
of the loan and recorded </FONT>as <FONT STYLE="letter-spacing: -0.05pt">interest income. To maintain our status as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC,
we must pay out to stockholders this non-cash source </FONT>of <FONT STYLE="letter-spacing: -0.05pt">income </FONT>in <FONT STYLE="letter-spacing: -0.05pt">the
form of dividends even </FONT>if <FONT STYLE="letter-spacing: -0.05pt">we have not yet collected any cash in respect of such investments.
We will continue to pay </FONT>out <FONT STYLE="letter-spacing: -0.05pt">net investment income and/or realized capital gains, if
any, on an annual</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">basis as required
under the 1940 Act.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 222.5pt; text-align: center"></P>


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

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.55pt 0 5.3pt; text-align: justify; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><B>Cash
Flows</B>&mdash;For purposes </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the Statements of Cash Flows, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>of <FONT STYLE="letter-spacing: -0.05pt">complying with RIC requirements from cash equivalents.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><B>Taxes</B>&mdash;We
intend to comply with the requirements of the Code necessary to qualify as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC and,
as such, will not </FONT>be <FONT STYLE="letter-spacing: -0.05pt">subject to federal income taxes on </FONT><FONT STYLE="letter-spacing: -0.1pt">otherwise</FONT>
<FONT STYLE="letter-spacing: -0.05pt">taxable income (including net realized capital gains) which is distributed</FONT> to <FONT STYLE="letter-spacing: -0.05pt">stockholders.
Therefore, no provision for federal income taxes is recorded in the financial statements. We borrow money from time</FONT> to <FONT STYLE="letter-spacing: -0.05pt">time</FONT>
to <FONT STYLE="letter-spacing: -0.05pt">maintain our tax status under the Code as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">RIC.
See Note </FONT>1 <FONT STYLE="letter-spacing: -0.05pt">for discussion of Taxable Subsidiaries and see Note </FONT>2 <FONT STYLE="letter-spacing: -0.05pt">for
further discussion of the Fund&rsquo;s RIC borrowings.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">All
corporations incorporated in the State of Delaware are required</FONT> to <FONT STYLE="letter-spacing: -0.05pt">file an Annual
Report and </FONT>to <FONT STYLE="letter-spacing: -0.05pt">pay </FONT>a <FONT STYLE="letter-spacing: -0.05pt">franchise tax. As
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">result, we paid Delaware Franchise tax in the amount</FONT> of <FONT STYLE="letter-spacing: -0.05pt">$0.03
million for the year ended December 31, 2019 and $0.02 million, for</FONT> each of the <FONT STYLE="letter-spacing: -0.05pt">years
ended December 31, 2018 and 2017.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Texas
margin tax applies to legal entities conducting business in Texas. The margin tax is based on our Texas sourced
taxable margin. </FONT>The <FONT STYLE="letter-spacing: -0.05pt">tax is calculated </FONT>by <FONT STYLE="letter-spacing: -0.05pt">applying</FONT>
a <FONT STYLE="letter-spacing: -0.05pt">tax rate to </FONT>a <FONT STYLE="letter-spacing: -0.05pt">base that considers
both revenue and expenses and therefore has the characteristics of an income tax. For the year ended December 31, 2019, no
state income tax is expected. We paid state income tax of $1 thousand and $3 thousand for the years ended December 31, 2018
and 2017, respectively.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

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

<P STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><B>Share-Based
Incentive Compensation</B><FONT STYLE="font-family: Calibri, Helvetica, Sans-Serif">&mdash;</FONT>On June 13, 2016, our
shareholders approved the adoption </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our 2016 Equity Incentive Plan
(&ldquo;Incentive Plan&rdquo;). On January 10, 2017, the SEC issued an order approving the Incentive Plan and certain awards
intended </FONT>to <FONT STYLE="letter-spacing: -0.05pt">be made thereunder. The Incentive Plan is intended </FONT>to <FONT STYLE="letter-spacing: -0.05pt">promote
the interests of the Fund by encouraging officers, employees, and directors of the Fund and its affiliates </FONT>to <FONT STYLE="letter-spacing: -0.05pt">acquire
or increase their equity interest in the Fund and to provide </FONT>a <FONT STYLE="letter-spacing: -0.05pt">means whereby
they may develop </FONT>a <FONT STYLE="letter-spacing: -0.05pt">proprietary </FONT>interest in the development and financial
success of <FONT STYLE="letter-spacing: -0.05pt">the Fund, to encourage them to remain with and devote their best efforts to
the business of the Fund, thereby advancing the interests </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the Fund and its
stockholders. The Incentive Plan is also intended to enhance the ability</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the
Fund and its affiliates to attract and retain the services </FONT>of <FONT STYLE="letter-spacing: -0.05pt">individuals who
are essential for the growth and profitability of the Fund. The Incentive Plan permits the award of restricted stock as well
as common stock purchase options. The maximum number of shares </FONT>of <FONT STYLE="letter-spacing: -0.05pt">common stock
that are subject to awards granted under the Incentive Plan is 2,434,728 shares. The term of the Incentive Plan will expire
on June 13, 2026. </FONT>On <FONT STYLE="letter-spacing: -0.05pt">March 17, 2017, we granted awards of restricted stock under
the Plan to certain of our directors and executive officers in the aggregate amount of 844,500 shares. The awards are each
subject to </FONT>a <FONT STYLE="letter-spacing: -0.05pt">vesting requirement over </FONT>a <FONT STYLE="letter-spacing: -0.05pt">3-year
period unless the recipient thereof is terminated or removed from their position as</FONT> a <FONT STYLE="letter-spacing: -0.05pt">director
or executive officer without &ldquo;cause&rdquo;, or as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">result of constructive
termination, as such terms are defined in the respective award agreements entered into by each of the recipients and the
Fund. As of December 31, 2019, 140,000 shares remain unvested. We account for share-based compensation using the fair value
method, as prescribed by ASC 718, Compensation&mdash;Stock Compensation. Accordingly, for restricted stock awards, we measure
the grant date fair value based upon the market price </FONT>of <FONT STYLE="letter-spacing: -0.05pt">our common stock on the
date of the grant and amortize the fair value of the awards as share-based compensation expense over the requisite service
period, which is generally the vesting term. For the years ended December 31, 2019, 2018, and 2017, we recorded
compensation expense </FONT>of <FONT STYLE="letter-spacing: -0.05pt">$0.3 million, $0.4 million and $1.1 million,
respectively, </FONT>in <FONT STYLE="letter-spacing: -0.05pt">connection with these awards. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5.3pt"></TD><TD STYLE="width: 1pt">(4)</TD><TD><FONT STYLE="letter-spacing: -0.05pt">RELATED PARTY TRANSACTIONS AND AGREEMENTS</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8.15pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>MVC
Capital, Inc.</I></FONT><I> &ndash; <FONT STYLE="letter-spacing: -0.05pt">Share Exchange. </FONT></I><FONT STYLE="letter-spacing: -0.05pt">On
May 14, 2014, we announced that the Fund intended to effect </FONT>a <FONT STYLE="letter-spacing: -0.05pt">reorganization pursuant
to Section 2(a)(33) of the 1940 Act (&ldquo;Plan</FONT> of <FONT STYLE="letter-spacing: -0.05pt">Reorganization&rdquo;). As </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">first step to consummating </FONT>the <FONT STYLE="letter-spacing: -0.05pt">Plan </FONT>or
<FONT STYLE="letter-spacing: -0.05pt">Reorganization,</FONT> we <FONT STYLE="letter-spacing: -0.05pt">sold to MVC 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</FONT>
to as the &ldquo;Share <FONT STYLE="letter-spacing: -0.05pt">Exchange&rdquo;). MVC is </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC
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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">variety </FONT>of <FONT STYLE="letter-spacing: -0.05pt">industries.
The Share Exchange was calculated based </FONT>on <FONT STYLE="letter-spacing: -0.05pt">the Fund&rsquo;s and MVC&rsquo;s respective
net asset value per share. At the time of the Share Exchange, </FONT>the <FONT STYLE="letter-spacing: -0.05pt">number of MVC shares
received by Equus represented approximately 1.73% of MVC&rsquo;s total outstanding shares of common stock. During 2019, we received
36,756 additional</FONT> shares in <FONT STYLE="letter-spacing: -0.05pt">the form of dividend payments. As of December 31, 2019,
we valued our 563,894 MVC shares at $5.2 million, </FONT>a<FONT STYLE="letter-spacing: -0.05pt">n increase from $4.3 million at
December 31, 2018. The value of our MVC shares was based on MVC&rsquo;s closing trading price </FONT>on <FONT STYLE="letter-spacing: -0.05pt">the
NYSE as </FONT>of <FONT STYLE="letter-spacing: -0.05pt">such dates. Due to the ownership relationship between the Company and MVC,
the investment and amounts due to and from MVC have been identified and disclosed as &ldquo;related party(ies)&rdquo; in our Consolidated
Financial Statements.</FONT></P>

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

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

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

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


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.15pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Agreement
to Acquire Portfolio Company of MVC</I>&mdash;On April 24, 2017, we entered into </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Stock
Purchase Agreement and Plan of Merger (&ldquo;Merger Agreement&rdquo;) with ETR Merger</FONT> Sub, Inc., a <FONT STYLE="letter-spacing: -0.05pt">newly-formed
wholly-owned subsidiary of Equus, </FONT>certain <FONT STYLE="letter-spacing: -0.05pt">shareholders of USG&amp;E, and MVC as </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">selling shareholder of U.S. Gas </FONT>&amp; <FONT STYLE="letter-spacing: -0.05pt">Electric,
Inc. (&ldquo;USG&amp;E&rdquo;) and as representative </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the selling USG&amp;E shareholders.
On May 30, 2017, USG&amp;E and MVC notified us that they had accepted </FONT>a <FONT STYLE="letter-spacing: -0.05pt">proposal from
Crius Energy Trust, that was considered by the respective boards of directors </FONT>of <FONT STYLE="letter-spacing: -0.05pt">USG&amp;E
and MVC to constitute </FONT>a <FONT STYLE="letter-spacing: -0.05pt">&ldquo;Superior Proposal&rdquo; (as such term is defined in
the Merger Agreement) to the terms and conditions of the Merger Agreement, and, accordingly, provided us with </FONT>a <FONT STYLE="letter-spacing: -0.05pt">notice
of termination pursuant to the Merger Agreement. Further, pursuant to the Merger Agreement, USG&amp;E paid </FONT>us a <FONT STYLE="letter-spacing: -0.05pt">termination
fee of $2.5 million.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">Except
as noted below, as compensation for services to the Fund, each Independent Director receives an annual fee of $40,000 paid quarterly
in arrears, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">fee of $2,000 for each meeting of the Board</FONT> of <FONT STYLE="letter-spacing: -0.05pt">Directors
or committee thereof attended </FONT>in <FONT STYLE="letter-spacing: -0.05pt">person, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">fee
of $1,000 for participation in each telephonic meeting of the Board or committee thereof, and reimbursement of all out-of-pocket
expenses relating to attendance at such meetings. The chair of each of our standing committees (audit, compensation, and nominating
and governance) also receives an annual fee of $50,000, payable quarterly in arrears. We may also pay other one-time or recurring
fees to members of our Board</FONT> of <FONT STYLE="letter-spacing: -0.05pt">Directors in special circumstances. None of our interested
directors receive annual fees for their service on the Board of Directors. We may also pay other one-time or recurring fees to
members of our Board</FONT> of <FONT STYLE="letter-spacing: -0.05pt">Directors in special circumstances. None of our interested
directors receive annual fees for their service on the Board of Directors.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.65pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">In
November 2011, Equus Energy, LLC (&ldquo;Equus Energy&rdquo;), </FONT>a <FONT STYLE="letter-spacing: -0.05pt">wholly-owned subsidiary
of the Fund, entered into </FONT>a <FONT STYLE="letter-spacing: -0.05pt">consulting agreement with Global Energy Associates, LLC
(&ldquo;Global Energy&rdquo;)</FONT> to <FONT STYLE="letter-spacing: -0.05pt">provide consulting services for energy</FONT> related
<FONT STYLE="letter-spacing: -0.05pt">investments. Henry W. Hankinson, Director</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the
Fund, </FONT>is a <FONT STYLE="letter-spacing: -0.05pt">managing partner and co-founder of Global Energy. For the year ended December
31, 2017, payments to Global Energy totaled $45,000. The agreement ended in July 2017.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 7.65pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">In
respect of services provided to the Fund by members of the Board not</FONT> in <FONT STYLE="letter-spacing: -0.05pt">connection
with their roles and duties as directors, the Fund pays </FONT>a <FONT STYLE="letter-spacing: -0.05pt">rate of $300 per hour for
services rendered. During 2019, 2018 and 2017, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">paid Kenneth</FONT> I. <FONT STYLE="letter-spacing: -0.05pt">Denos,
P.C.,</FONT> a <FONT STYLE="letter-spacing: -0.05pt">professional corporation owned </FONT>by <FONT STYLE="letter-spacing: -0.05pt">Kenneth
</FONT>I. <FONT STYLE="letter-spacing: -0.05pt">Denos, </FONT>a <FONT STYLE="letter-spacing: -0.05pt">director of the Fund, $0.3
million, $0.4 million and $0.6 million, respectively, for services provided to the Fund during these years.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 5.3pt"></TD><TD STYLE="width: 14.15pt">(5)</TD><TD>PLAN <FONT STYLE="letter-spacing: -0.05pt">OF REORGANIZATION</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Share
Exchange with MVC</I>&mdash;On May 14, 2014, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">announced that the Fund intended to
effect</FONT> a <FONT STYLE="letter-spacing: -0.05pt">Plan of Reorganization. As</FONT> a <FONT STYLE="letter-spacing: -0.05pt">first
step</FONT> to <FONT STYLE="letter-spacing: -0.05pt">consummating the Plan of Reorganization, we executed </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Share
Exchange with MVC, wherein we sold to MVC 2,112,000 newly-issued shares of our common stock </FONT>in <FONT STYLE="letter-spacing: -0.05pt">exchange
for 395,839 newly-issued shares </FONT>of <FONT STYLE="letter-spacing: -0.05pt">MVC. We also announced that, pursuant to the Plan
of Reorganization, our intention was for Equus </FONT>to <FONT STYLE="letter-spacing: -0.05pt">pursue </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation
with an operating company.</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Authorization
to Withdraw BDC Election</I>&mdash;As </FONT>a <FONT STYLE="letter-spacing: -0.05pt">consequence of our Plan </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Reorganization,
</FONT>on <FONT STYLE="letter-spacing: -0.05pt">November 19, 2019, holders of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">majority
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">the outstanding common stock of the Fund approved our cessation as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">BDC
under the 1940 Act and authorized our Board of Directors to cause the Fund&rsquo;s withdrawal of its election to be classified
as</FONT> a <FONT STYLE="letter-spacing: -0.05pt">BDC, each effective as of </FONT>a <FONT STYLE="letter-spacing: -0.05pt">date
designated by the Board and our Chief Executive Officer on or before</FONT> March 31, 2020<FONT STYLE="letter-spacing: -0.05pt">.
Notwithstanding these authorizations </FONT>to <FONT STYLE="letter-spacing: -0.05pt">withdraw our BDC election, we will not submit
any such withdrawal unless and until we are reasonably confident that such Consolidation will </FONT>be <FONT STYLE="letter-spacing: -0.05pt">completed.</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 5.35pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Agreement
to Acquire U.S. Gas</I></FONT><I> &amp; <FONT STYLE="letter-spacing: -0.05pt">Electric,</FONT> <FONT STYLE="letter-spacing: -0.1pt">Inc.</FONT></I><FONT STYLE="letter-spacing: -0.1pt">&mdash;On</FONT>
<FONT STYLE="letter-spacing: -0.05pt">April 24, 2017, we entered into the Merger Agreement with ETR Merger Sub, Inc., </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">newly-formed wholly-owned subsidiary of Equus, certain shareholders of USG&amp;E, and MVC
as </FONT>a <FONT STYLE="letter-spacing: -0.05pt">selling shareholder </FONT>of <FONT STYLE="letter-spacing: -0.05pt">USG&amp;E
and as representative of the selling USG&amp;E shareholders. On May 30, 2017, USG&amp;E and MVC notified us that they had accepted
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">proposal from Crius Energy Trust, that was considered by the respective boards </FONT>of
<FONT STYLE="letter-spacing: -0.05pt">directors</FONT> of <FONT STYLE="letter-spacing: -0.05pt">USG&amp;E and MVC to constitute
</FONT>a <FONT STYLE="letter-spacing: -0.05pt">&ldquo;Superior Proposal&rdquo; (as such term is defined in the Merger Agreement)
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">the terms and conditions of the Merger Agreement, and, accordingly, provided</FONT>
us <FONT STYLE="letter-spacing: -0.05pt">with </FONT>a <FONT STYLE="letter-spacing: -0.05pt">notice </FONT>of <FONT STYLE="letter-spacing: -0.05pt">termination
pursuant to the Merger Agreement. Further, pursuant to the Merger Agreement, USG&amp;E paid </FONT>us a <FONT STYLE="letter-spacing: -0.05pt">termination
fee of</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">$2.5 </FONT><FONT STYLE="letter-spacing: -0.1pt">million.</FONT></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Intention
to Continue </I></FONT><I>to <FONT STYLE="letter-spacing: -0.05pt">Pursue Consolidation</FONT></I><FONT STYLE="letter-spacing: -0.05pt">&mdash;Notwithstanding
the termination of the Merger Agreement with USG&amp;E described above, we intend to pursue </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation
and the completion of our Plan of Reorganization with another operating company or the transformation of Equus into a permanent
capital vehicle, and in each case, withdraw our BDC election as authorized</FONT> by <FONT STYLE="letter-spacing: -0.05pt">our
stockholders. While we </FONT>are <FONT STYLE="letter-spacing: -0.05pt">presently evaluating various opportunities that could enable
</FONT>us to <FONT STYLE="letter-spacing: -0.05pt">accomplish </FONT>a <FONT STYLE="letter-spacing: -0.05pt">Consolidation, we
cannot assure you that we will be able to do so within any particular time period or at all. Moreover, we cannot assure you that
the terms of any such transaction that would embody </FONT>a <FONT STYLE="letter-spacing: -0.05pt">potential </FONT><FONT STYLE="letter-spacing: -0.1pt">Consolidation</FONT>
<FONT STYLE="letter-spacing: -0.05pt">would be acceptable to </FONT><FONT STYLE="letter-spacing: -0.1pt">us.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.45pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 283.5pt 0 284.35pt; text-align: center"></P>


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

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

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<TD STYLE="width: 5.3pt"></TD><TD STYLE="width: 14.15pt">(6)</TD><TD><FONT STYLE="letter-spacing: -0.05pt">FEDERAL INCOME TAX MATTERS</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt 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 have
incurred net investment losses and have had no realized gains for 2019, no distributions were required or made.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Our year-end for determining capital gains
for purposes of Section&nbsp;4982 of the Code is October&nbsp;31.</P>

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

<P STYLE="font: 10pt 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, 2019, we had approximately
$18.5 million in capital losses of which can be carried forward indefinitely.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">Reclassification of returns of capital had
no material book to tax differences for the three years ended December 31, 2019 and therefore has no material book to tax differences
impacting accumulated earnings during that three-year period.</P>

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

<P STYLE="font: 10pt 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, 2019 or December 31, 2018.
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 Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 24.5pt">All of the Fund&rsquo;s federal and state tax
returns for 2016 through 2019 remain open to examination (the State of Texas may be longer). 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 Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

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<TD STYLE="width: 5.3pt"></TD><TD STYLE="width: 14.2pt">(7)</TD><TD><FONT STYLE="letter-spacing: -0.05pt">COMMITMENTS AND CONTINGENCIES</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.5pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Lease
Commitments</I>. We had an operating lease for office space that expired in September 2014. Our current office space lease is month-to-month.
Rent expense under the operating lease agreement, inclusive of common area maintenance costs, was</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">$111,000, $111,000
and $109,000 for the years ended December 31, 2019, December 31, 2018 and December 31, 2017, respectively.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 16.05pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Portfolio
Companies.</I> As of December 31, 2019 and 2018, we had no outstanding commitments to our portfolio company investments; however,
under certain </FONT><FONT STYLE="letter-spacing: -0.1pt">circumstances,</FONT> <FONT STYLE="letter-spacing: -0.05pt">we may be
called on to make follow-on investments </FONT>in <FONT STYLE="letter-spacing: -0.05pt">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</FONT> of the <FONT STYLE="letter-spacing: -0.05pt">portfolio company could
be reduced. Follow-on investments may include capital infusions which are expenditures made directly to the portfolio company</FONT>
to <FONT STYLE="letter-spacing: -0.05pt">ensure that operations are completed, thereby allowing the portfolio company to generate
cash flows </FONT>to <FONT STYLE="letter-spacing: -0.05pt">service the debt.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8.2pt 0 5.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt"><I>Legal
Proceedings&ndash;Shareholder Complaint.</I> On November 16, 2016, Samuel Zalmanoff filed </FONT>a <FONT STYLE="letter-spacing: -0.05pt">lawsuit
against the Fund and members</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the Board </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Directors
in the Court </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Chancery </FONT>in <FONT STYLE="letter-spacing: -0.05pt">the State
of Delaware. The lawsuit was filed in connection with the Fund&rsquo;s 2016 Equity Incentive Plan (&ldquo;Incentive Plan&rdquo;)
which was adopted by the Board </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Directors on April 15, 2016, approved </FONT>by
<FONT STYLE="letter-spacing: -0.05pt">the Equus shareholders </FONT>on <FONT STYLE="letter-spacing: -0.05pt">June 13, 2016, and
approved, with certain standard exceptions, by the Securities and Exchange Commission on January 10, 2017. Mr. Zalmanoff&rsquo;s
complaint, which purported to be on behalf</FONT> of <FONT STYLE="letter-spacing: -0.05pt">all non-affiliate Equus shareholders
entitled </FONT>to <FONT STYLE="letter-spacing: -0.05pt">vote for the Incentive Plan, alleged </FONT>a <FONT STYLE="letter-spacing: -0.05pt">breach
by the Board </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Directors of its fiduciary duties </FONT>of <FONT STYLE="letter-spacing: -0.05pt">disclosure
</FONT>in <FONT STYLE="letter-spacing: -0.05pt">connection with the Incentive Plan, and sought an order from the court: (i) enjoining
implementation of the Incentive Plan, (ii) requiring the Fund </FONT>to <FONT STYLE="letter-spacing: -0.05pt">revise its disclosures
relating to the Incentive Plan, and (iii) for an award of costs, attorneys&rsquo; fees, and expenses. We believe that this lawsuit,
and the allegations included therein, was without merit. Accordingly, on September 22, 2017, we filed </FONT>a <FONT STYLE="letter-spacing: -0.05pt">motion
for summary judgment regarding this action which </FONT>was <FONT STYLE="letter-spacing: -0.05pt">granted by the Chancery Court
on November 13, 2018. Mr. Zalmanoff appealed the Chancery Court ruling to the Delaware Supreme Court and, on May 16, 2019, the
Delaware Supreme Court affirmed the Chancery Court decision and terminated the proceedings.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 283.5pt 0 284.35pt; text-align: center"></P>


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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.1pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 0.5in"><FONT STYLE="letter-spacing: -0.05pt">From
time to time, the</FONT> Fund is <FONT STYLE="letter-spacing: -0.05pt">also</FONT> a <FONT STYLE="letter-spacing: -0.05pt">party
to certain proceedings incidental</FONT> to <FONT STYLE="letter-spacing: -0.05pt">the normal course of our business including </FONT><FONT STYLE="letter-spacing: -0.1pt">the</FONT>
<FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">material effect upon the Fund&rsquo;s financial condition or results </FONT>of <FONT STYLE="letter-spacing: -0.05pt">operations.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>(8) PORTFOLIO SECURITIES</B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"><B>2019 Portfolio Activity</B></P>

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


<P STYLE="font: 10pt/200% Times New Roman, Times, Serif; margin: 0.4pt 65.15pt 0 30.85pt"><FONT STYLE="letter-spacing: -0.05pt">During
the year ended December 31, 2019, we received 10,338 shares of MVC </FONT>in <FONT STYLE="letter-spacing: -0.05pt">the form of
stock dividend payments. The following table summarizes significant investment activity during the year ended December 31, 2019
(in thousands):</FONT></P>

<P STYLE="font: 10pt/200% Times New Roman, Times, Serif; margin: 0.4pt 65.15pt 0 30.85pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</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-size: 12pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="15" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Investment
    Activity</FONT></TD><TD STYLE="font-size: 12pt; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="7" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">New
    Investments</FONT></TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="7" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Existing
    Investments</FONT></TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: right"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 12pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid; vertical-align: middle"><FONT STYLE="font-size: 10pt">Portfolio
    Company</FONT></TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Cash</FONT></TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Non-Cash</FONT></TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Follow-On</FONT></TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Dividend</FONT></TD><TD STYLE="font-size: 12pt; font-weight: bold; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-size: 12pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">Total</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 35%; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">MVC Capital, Inc.</FONT></TD><TD STYLE="width: 2%; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid">$<FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 2%; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid">$<FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 2%; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid">$<FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 2%; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid">$<FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">333</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 2%; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: left; border-bottom: Black 1pt solid">$<FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="width: 9%; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">333</FONT></TD><TD STYLE="width: 1%; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: right; padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">333</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="padding-bottom: 2.5pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left"><FONT STYLE="font-size: 10pt">$</FONT></TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right"><FONT STYLE="font-size: 10pt">333</FONT></TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt/200% Times New Roman, Times, Serif; margin: 0.4pt 65.15pt 0 30.85pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 3.7pt 0 0 9pt; color: Red"><FONT STYLE="letter-spacing: -0.05pt"><B></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0 31.5pt"><FONT STYLE="letter-spacing: -0.05pt">During 2019,
</FONT>we <FONT STYLE="letter-spacing: -0.05pt">realized net capital gains of </FONT>$53 <FONT STYLE="letter-spacing: -0.05pt">thousand
due to the disposition of temporary cash investments.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0 31.5pt">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 37.6pt"></TD><TD STYLE="width: 21.7pt">(i)</TD><TD STYLE="padding-right: 18.15pt">During 2019, we recorded an increase of $8.3 million in net unrealized appreciation, from $17.1
million at December 31, 2018 to $25.4 millionIncrease in the fair value of our shareholding in MVC of $0.8 million due to an increase
in the share price of MVC and the receipt of dividend payments in the form of additional shares of MVC during the year;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 37.6pt"></TD><TD STYLE="width: 21.7pt">(ii)</TD><TD STYLE="padding-right: 41.2pt">Increase in fair value of our shareholding in PalletOne, Inc. of $6.0 million due to improved
operating performance;</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 37.6pt"></TD><TD STYLE="width: 21.7pt">(iii)</TD><TD STYLE="padding-right: 29.75pt">Transfer of unrealized depreciation to realized loss of our holdings in EMDC of $2.8 million
in connection with the dissolution of EMDC and the transfer of its assets to the Fund; and</TD></TR></TABLE>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 37.6pt"></TD><TD STYLE="width: 21.7pt">(iv)</TD><TD STYLE="padding-right: 15.1pt">Decrease in the fair value of our holdings in Equus Energy, LLC of $1.0 million, principally
due to decreases in gas prices and decreases in the short and long term forward pricing curve for oil.</TD></TR></TABLE>

<P STYLE="font: 10pt/200% Times New Roman, Times, Serif; margin: 0.4pt 65.15pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt/199% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: left"><FONT STYLE="letter-spacing: -0.05pt">2018 Portfolio Activity</FONT></P>

<P STYLE="font: 10pt/200% Times New Roman, Times, Serif; margin: 0.4pt 65.15pt 0 30.85pt"><FONT STYLE="letter-spacing: -0.05pt">During
the year ended December 31, 2018, we received 30,930 shares of MVC </FONT>in <FONT STYLE="letter-spacing: -0.05pt">the form of
stock dividend payments. The following table summarizes significant investment activity during the year ended December 31, 2018
(in thousands):</FONT></P>

<P STYLE="font: 2pt/2pt Times New Roman, Times, Serif; margin: 0 0 0 437.05pt">&nbsp;</P>

<P STYLE="font: 6.5pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt 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-family: Times New Roman, Times, Serif; font-size: 10pt"><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; background-color: white">
    <TD STYLE="text-align: right; 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 COLSPAN="5" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>New Investments</B></FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="5" STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Existing Investments</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="border-bottom: black 1pt solid; line-height: 115%; width: 40%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Portfolio Company</B></FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Cash</B></FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Non-Cash</B></FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Follow-On</B></FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>PIK/Dividend</B></FONT></TD>
    <TD STYLE="text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; width: 1%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%; width: 9%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Total</B></FONT></TD>
    <TD STYLE="line-height: 115%; width: 1%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: #CCEEFF">
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MVC Capital, Inc.</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-family: Times New Roman, Times, Serif; font-size: 10pt">&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-family: Times New Roman, Times, Serif; font-size: 10pt">&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-family: Times New Roman, Times, Serif; font-size: 10pt">&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-family: Times New Roman, Times, Serif; font-size: 10pt">303</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-family: Times New Roman, Times, Serif; font-size: 10pt">303</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: white">
    <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-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&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-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&mdash;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 2.25pt double; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">303</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-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD>
    <TD STYLE="border-bottom: black 2.25pt double; text-align: right; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">303</FONT></TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 6.5pt Times New Roman, Times, Serif; margin: 0.2pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0 30.85pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 3.7pt 0 0 30.85pt"><FONT STYLE="letter-spacing: -0.05pt">During 2018,
</FONT>we <FONT STYLE="letter-spacing: -0.05pt">realized net capital gains of </FONT>$9 <FONT STYLE="letter-spacing: -0.05pt">thousand
due to the disposition of temporary cash investments.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0; text-align: center"></P>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">During
2018, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">recorded an increase of $3.6 million in net unrealized appreciation, from
$13.5 million at December 31, 2017 to $17.1 million at December 31, 2018, in our portfolio securities. Such increase resulted primarily
from the following changes:</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 37.6pt"></TD><TD STYLE="width: 21.7pt"><FONT STYLE="letter-spacing: -0.05pt">(i)</FONT></TD><TD STYLE="padding-right: 6.35pt"><FONT STYLE="letter-spacing: -0.05pt">Decrease in the fair value of our shareholding in MVC</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">$1.2 million due to</FONT> a <FONT STYLE="letter-spacing: -0.05pt">decrease in the MVC
share price during 2018, which was partially offset by the receipt of dividend payments in the form </FONT>of <FONT STYLE="letter-spacing: -0.05pt">additional
shares of MVC;</FONT></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.5pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 37.6pt"></TD><TD STYLE="width: 21.7pt"><FONT STYLE="letter-spacing: -0.05pt">(ii)</FONT></TD><TD STYLE="padding-right: 25.9pt"><FONT STYLE="letter-spacing: -0.05pt">Increase in fair value</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our
                                                                                                                 shareholding </FONT>in <FONT STYLE="letter-spacing: -0.05pt">PalletOne, Inc. (&ldquo;PalletOne&rdquo;) of $3.8 million
                                                                                                                 due</FONT> to <FONT STYLE="letter-spacing: -0.05pt">an overall improvement in comparable industry sectors, as well as
                                                                                                                 continued revenue increases; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt/11.35pt Times New Roman, Times, Serif; margin: 0 0 0 66.3pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 37.6pt"></TD><TD STYLE="width: 21.7pt"><FONT STYLE="letter-spacing: -0.05pt">(iii)</FONT></TD><TD STYLE="padding-right: 47.15pt"><FONT STYLE="letter-spacing: -0.05pt">Increase in the fair value of our holdings in Equus Energy
of $1.0 million, principally due to an increase </FONT>in <FONT STYLE="letter-spacing: -0.05pt">comparable transactions for mineral
leases.</FONT></TD></TR></TABLE>

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0.45pt 0 0"></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.85pt"></P>


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


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<TD STYLE="width: 8.3pt"></TD><TD STYLE="width: 14.15pt">(9)</TD><TD><FONT STYLE="letter-spacing: -0.05pt">EQUUS ENERGY, </FONT>LLC</TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 11.4pt 0 8.3pt; text-indent: 27.5pt"><FONT STYLE="letter-spacing: -0.05pt">Equus
Energy, LLC (&ldquo;Equus Energy&rdquo;) was formed</FONT> in <FONT STYLE="letter-spacing: -0.05pt">November 2011 </FONT>as
a <FONT STYLE="letter-spacing: -0.05pt">wholly-owned subsidiary of the Fund</FONT> to <FONT STYLE="letter-spacing: -0.05pt">make
investments in companies in the energy sector, with particular emphasis on income-producing oil</FONT> &amp; <FONT STYLE="letter-spacing: -0.05pt">gas
properties. In December 2011, we contributed </FONT>$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 presently consisting of 141 producing and non- producing oil and gas wells. The working
interests include associated development rights of <FONT STYLE="letter-spacing: -0.05pt">approximately 21,520 acres situated </FONT>on <FONT STYLE="letter-spacing: -0.05pt">11
separate properties in Texas and Oklahoma. The working interests range from</FONT> a <I>de <FONT STYLE="letter-spacing: -0.05pt">minimus </FONT></I><FONT STYLE="letter-spacing: -0.05pt">amount</FONT>
to <FONT STYLE="letter-spacing: -0.05pt">50% of the leasehold that includes these wells.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8.85pt 0 5.3pt; text-indent: 27.5pt"><FONT STYLE="letter-spacing: -0.05pt">The
wells are operated </FONT>by a <FONT STYLE="letter-spacing: -0.05pt">number </FONT>of <FONT STYLE="letter-spacing: -0.05pt">operators,
including Chevron USA, Inc., which has operating responsibility for all of Equus Energy&rsquo;s 22 producing well interests located
in the Conger Field,</FONT> a <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">50%
working interest in each of these Conger Field wells, is working with Chevron in </FONT>a <FONT STYLE="letter-spacing: -0.05pt">recompletion
program of existing Conger Field wells to the Wolfcamp formation,</FONT> a <FONT STYLE="letter-spacing: -0.05pt">zone containing
oil as well as gas and natural gas liquids. Part of Equus Energy&rsquo;s acreage rights described above also includes </FONT>a
<FONT STYLE="letter-spacing: -0.05pt">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 </FONT>in <FONT STYLE="letter-spacing: -0.05pt">the interests acquired
</FONT>by <FONT STYLE="letter-spacing: -0.05pt">Equus Energy are working interests </FONT>of <FONT STYLE="letter-spacing: -0.05pt">7.5%
and 2.5% in the Burnell and North Pettus Units, respectively, which collectively comprise approximately 13,000 acres located</FONT>
in <FONT STYLE="letter-spacing: -0.05pt">the area known as the &ldquo;Eagle Ford Shale&rdquo; play.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8.85pt 0 5.3pt; text-indent: 27.5pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8.85pt 0 5.3pt; text-indent: 27.5pt"><FONT STYLE="letter-spacing: -0.05pt"></FONT></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8.85pt 0 5.3pt; text-indent: 27.35pt"><FONT STYLE="letter-spacing: -0.05pt">Below
is selected financial information from the audited financial statements of Equus Energy as of December 31, 2019 and 2018, and for
the years ended December 31, 2019, 2018 and 2017 (in thousands):</FONT></P>

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<P STYLE="font: 10pt/11.5pt Times New Roman, Times, Serif; margin: 0 6.15pt 0 5.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><U>EQUUS
ENERGY, LLC and SUBSIDIARY</U></FONT></P>

<P STYLE="font: 10pt/11.5pt Times New Roman, Times, Serif; margin: 0 6.25pt 0 5.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><U>Unaudited
Condensed Consolidated Balance Sheets</U></FONT></P>

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<P STYLE="font: 9pt Sans-Serif; margin: 0 0 0 67.5pt; color: Red"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">December 31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&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">2019</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">2018</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>Assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Current assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 63%; text-align: left; padding-left: 10pt">Cash and cash equivalents</TD><TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">553</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 12%; text-align: right">966</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">65</TD><TD STYLE="text-align: left">&nbsp;</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Other current assets</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">34</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">34</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">652</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1127</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">8,031</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">8,008</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">(7,789</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">(7,772</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">242</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">236</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 assets</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">894</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,363</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: center">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Liabilities and member's equity</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: right">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Current liabilities:</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="text-align: left; padding-left: 10pt">Accounts payable and other</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">82</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">$</TD><TD STYLE="text-align: right">131</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt">Due to affiliate</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">561</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">561</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">643</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">692</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">201</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">195</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>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">844</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">887</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Total member's equity</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">49</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">476</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD>&nbsp;</TD><TD STYLE="font-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 STYLE="text-align: left; padding-bottom: 1pt; padding-left: 20pt">Total liabilities and member's equity</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">894</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">1,363</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0.95pt 0 0; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><U>EQUUS
ENERGY, LLC and SUBSIDIARY</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.25pt 0 5.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><U>Unaudited
Condensed Consolidated Statements of Operations</U></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.25pt 0 5.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

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<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year Ended December 31</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">2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">2018</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">2017</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; text-align: left">Operating revenue</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">704</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">1,085</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">861</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><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">857</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">787</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">554</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">Gain on sale of oil and gas properties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(619</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; padding-left: 10pt">General and administrative</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">251</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">285</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">278</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">23</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">344</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">295</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">Impairment of 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">&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"> &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">Total operating 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">1,131</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">796</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">1,127</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">Income (loss) before income tax expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(426</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">289</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(266</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt">Income tax expense, 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</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">&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">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">(427</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">288</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left"></TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(266</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
</TABLE>
<P STYLE="font: 9pt Sans-Serif; margin: 0 6.25pt 0 5.3pt; text-align: center; color: Red"><FONT STYLE="letter-spacing: -0.05pt"><B><U></U></B></FONT></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>

<P STYLE="font: 10pt/11.5pt Times New Roman, Times, Serif; margin: 3.7pt 6.15pt 0 5.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><U>EQUUS
ENERGY, LLC and SUBSIDIARY</U></FONT></P>

<P STYLE="font: 10pt/11.5pt Times New Roman, Times, Serif; margin: 0 6.25pt 0 5.3pt; text-align: center"><FONT STYLE="letter-spacing: -0.05pt"><U>Unaudited
Condensed Consolidated Statements </U></FONT><U>of <FONT STYLE="letter-spacing: -0.05pt">Cash Flows</FONT></U></P>

<P STYLE="font: 6.5pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0.2pt 0 0"><B></B></P>

<P STYLE="font: 1.5pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 9pt Sans-Serif; margin: 0.1pt 0 0; text-align: center; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="11" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Year ended December 31,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="text-align: center">&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">2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">2018</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center; vertical-align: bottom">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid; vertical-align: bottom">2017</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 STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: right">&nbsp;</TD><TD STYLE="font-weight: bold; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 49%; text-align: left">Net income (loss)</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(427</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">288</TD><TD STYLE="width: 1%; text-align: left"></TD><TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 11%; text-align: right">(266</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Adjustments to reconcile net income (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><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">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>&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: 30pt">Depletion, depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">17</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">338</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">289</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">Gain on sale of oil and gas properties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(619</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; padding-left: 30pt">Accretion expense</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">6</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></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding-left: 30pt">Impairment</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&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">265</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><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</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">62</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(26</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(10</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 20pt">Prepaid expenses and other current assets</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1</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: 20pt">Affiliate payable/receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&mdash;&nbsp;</TD><TD STYLE="text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <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">(49</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">24</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</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: 30pt">Net cash  (used in) 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">(391</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</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">25</TD><TD STYLE="padding-bottom: 1pt; text-align: left"></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: 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">Cash flows from investing activities:</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="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">(22</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(173</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(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; padding-bottom: 1pt; padding-left: 10pt">Sale of oil &amp; 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">&mdash;&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">847</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;</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 provided by (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">(22</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">674</TD><TD STYLE="padding-bottom: 1pt; text-align: left"></TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(9</TD><TD STYLE="padding-bottom: 1pt; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Net increase (decrease) in cash</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(413</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">659</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16</TD><TD STYLE="text-align: left"></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">966</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">307</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">291</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">553</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">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">966</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 2.5pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; text-align: left">$</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">307</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">&nbsp;</TD></TR>
</TABLE>
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<TD STYLE="width: 5.3pt"></TD><TD STYLE="width: 19.2pt">(10)</TD><TD><FONT STYLE="letter-spacing: -0.05pt">RECENT ACCOUNTING PRONOUNCEMENTS</FONT></TD></TR></TABLE>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt"><B>Accounting Standards Recently Adopted</B>&mdash; In March
2019, the Securities Exchange Commission (the &ldquo;SEC&rdquo;) adopted the final rule under SEC Release No. 33-10618, Fast Act
Modernization and Simplification of Regulation S-K, amending certain disclosure requirements. The amendments are intended to simplify
certain disclosure requirements and to provide for a consistent set of rules to govern incorporating information by reference and
hyperlinking, improve readability and navigability of disclosure documents, and discourage repetition and disclosure of immaterial
information. The Company adopted the final rule under SEC Release No. 33-10618 as of December 31, 2019. The Company has evaluated
the impact of the amendments and determined the effect of the adoption of the simplification rules on financial statements will
be limited to the modification and removal of certain disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt">In August&nbsp;2018, the SEC adopted the final rule under
SEC Release No. 33-10532 (the &ldquo;Rule&rdquo;), Disclosure Update and Simplification, amending certain disclosure requirements
that were redundant, outdated or superseded. The Rule is intended to facilitate the disclosure of information to investors and
simplify compliance. The Company has adopted the Rule. The Rule included amendments to Regulation&nbsp;S-X (the &ldquo;Amendments&rdquo;),
including revisions to Rule&nbsp;6-04.17 under Regulation&nbsp;S-X to remove the requirement to separately state the book basis
components of net assets on the Consolidated Statement of Assets and Liabilities: undistributed (over distribution of) net investment
income, accumulated undistributed net realized gains (losses), and net unrealized appreciation (depreciation). Instead, consistent
with GAAP, funds are required to disclose total distributable earnings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt">The components that make up distributable earnings (accumulated
undistributed deficit) on the Statement of Assets and Liabilities as of December&nbsp;31, 2019 and 2018 are as follows:</P>

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

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<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid">&#8203;</TD><TD STYLE="font-size: 11pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 11pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of December&nbsp;31, 2019</TD><TD STYLE="font-size: 11pt; font-weight: bold; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 11pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">As of December&nbsp;31, 2018</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; font-size: 11pt; text-align: left">Accumulated undistributed net investment losses</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">(35,445</TD><TD STYLE="width: 1%; text-align: left">)</TD><TD STYLE="width: 8%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 12%; text-align: right">(29,327</TD><TD STYLE="width: 1%; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 11pt; text-align: left">Unrealized appreciation of portfolio securities, net</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,100</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">19,310</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 11pt; text-align: left">Unrealized depreciation of portfolio securities, net - related party</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(1,741</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,251</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 11pt; text-align: left; padding-bottom: 1pt">Accumulated undistributed net capital gains</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">9</TD><TD STYLE="padding-bottom: 1pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 11pt; text-align: left; padding-bottom: 2.5pt">Accumulated undistributed deficit</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">(10,086</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">&nbsp;</TD><TD STYLE="border-bottom: Black 2.5pt double; text-align: right">(12,259</TD><TD STYLE="padding-bottom: 2.5pt; text-align: left">)</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify">The Company&rsquo;s Balance Sheets and Statements of Changes
in Net Assets for the current and comparative reporting period have been modified to conform to the rule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify">In December 2016, the FASB issued ASU 2016-19, Technical
Corrections and Improvements, which makes minor corrections and clarifications that affect a wide variety of topics in the Accounting
Standards Codification, including an amendment to ASC Topic 820, Fair Value Measurement, which clarifies the difference between
a valuation approach and a valuation technique when applying the guidance of that Topic. The amendment also requires an entity
to disclose when there has been a change in either or both a valuation approach and/or a valuation technique. The transition guidance
for the ASC Topic 820 amendment must be applied prospectively because it could potentially involve the use of hindsight that includes
fair value measurements. The new guidance is effective for annual reporting periods beginning after December 15, 2017, including
interim periods within those years. Early application is permitted for any fiscal year or interim period for which the entity&rsquo;s
financial statements have not yet been issued. There was no impact on the financial position or financial statement disclosures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify">In November 2016, the FASB issued ASU No. 2016-18, Statement
of Cash Flows (Topic 230) &mdash; Restricted Cash. This standard provides guidance on the presentation of restricted cash and restricted
cash equivalents in the statement of cash flows. Restricted cash and restricted cash equivalents should be included with cash and
cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statements of cash flows. The
amendments of this ASU should be applied using a retrospective transition method and are effective for reporting periods beginning
after December 15, 2017, with early adoption permitted. Other than the revised statement of cash flows presentation of restricted
cash, the adoption of ASU 2016-18 did not have an impact on our financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify">In August 2016, the FASB issued ASU 2016-15, Statement of
Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force),
which addresses the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement
of cash flows under ASC 230, Statement of Cash Flows, and other topics. ASU 2016-15 provides guidance on eight specific cash flow
issues including the statement of cash flows treatment of beneficial interests in securitized financial transactions as well as
the treatment of debt prepayment and extinguishment costs. ASU 2016-15 also provides guidance on the predominance principle to
clarify when cash receipts and cash payments should be separated into more than one class of cash flows. ASU 2016-15 is effective
for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal
years. Early adoption is permitted, including adoption in an interim period. There was no impact on our statements of cash flows.</P>

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

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify">In February 2016, the FASB issued ASU 2016-02, Leases, which
requires lessees to recognize on the balance sheet a right of use asset, representing its right to use the underlying asset for
the lease term, and a lease liability for all leases with terms greater than 12 months and the use of practical expedient for leases
less than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing,
and uncertainty of cash flows arising from leases. The standard requires the use of a modified retrospective transition approach,
which includes a number of optional practical expedients that entities may elect to apply. The new guidance was adopted effective
January 1, 2019. The adoption of ASU 2016-02 did not have an impact on our financial statements as we currently have no operating
leases as our principal offices are under a month-to-month lease arrangement for annual periods beginning after December 15, 2018,
and interim periods therein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify">In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts
with Customers (Topic 606). ASU 2014-09 supersedes the revenue recognition requirements under ASC 605, Revenue Recognition, and
most industry-specific guidance throughout the Industry Topics of the ASC. The core principle of the guidance is that an entity
should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration
to which an entity expects to be entitled in exchange for those goods or services. Under the new guidance, an entity is required
to perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in
the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract,
and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new guidance will significantly enhance
comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. Additionally, the
guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify">In March 2016, the FASB issued ASU 2016-08, Revenue from
Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which clarified
the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from
Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which clarified the implementation guidance
regarding performance obligations and licensing arrangements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify">In May 2016, the FASB issued ASU No. 2016-12, Revenue from
Contracts with Customers (Topic 606)&mdash;Narrow-Scope Improvements and Practical Expedients, which clarified guidance on assessing
collectability, presenting sales tax, measuring noncash consideration, and certain transition matters.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify">In December 2016, the FASB issued ASU No. 2016-20, Revenue
from Contracts with Customers (Topic 606)&mdash;Technical Corrections and Improvements, which provided disclosure relief, and clarified
the scope and application of the new revenue standard and related cost guidance. The new guidance will be effective for the annual
reporting period beginning after December 15, 2017, including interim periods within that reporting period. Early adoption would
be permitted for annual reporting periods beginning after December 15, 2016. We completed our initial assessment in evaluating
the potential impact on our financial statements and based on our assessment, determined that our financial instruments are excluded
from the scope of ASU 2014-09 and ASC 606. As a result of the scope exception for financial instruments, our management has determined
that there was no material changes to the recognition timing and classification of revenues and expenses; additionally, there was
no significant impact to pretax income or on financial statement disclosures upon adoption.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify"><B>Accounting
Standards Not Yet Adopted</B>&mdash;In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes.
The new standard is effective for the Company beginning on January 1, 2021. The Company is evaluating the effect ASU 2019-12 will
have on its consolidated financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify">In August 2018, the FASB issued ASU 2018-13, Fair Value
Measurement (Topic 820), which is intended to improve fair value disclosure requirements by removing disclosures that are not cost-beneficial,
clarifying disclosures&rsquo; specific requirements, and adding relevant disclosure requirements. The amendments take effect for
all organizations for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption
is permitted. We believe that the impact of the adoption of this standard will not have a material impact on our financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify">In June 2016, the FASB issued ASU
2016-13, Financial Instruments Credit Losses (Topic 326) &mdash;Measurement of Credit Losses on Financial Instruments, which amends
the financial instruments impairment guidance so that an entity is required to measure expected credit losses for financial assets
based on historical experience, current conditions and reasonable and supportable forecasts. As such, an entity will use forward-looking
information to estimate credit losses. ASU 2016-13 also amends the guidance in FASB ASC 325 - 40, Investments Other, Beneficial
Interests in Securitized Financial Assets, related to the subsequent measurement of accretable yield recognized as interest income
over the life of a beneficial interest in securitized financial assets under the effective yield method. We believe that the impact
of the adoption of this standard will not have a material impact on our financial statements as we do not have any financial instruments
that are subject to this standard.&nbsp;</P>


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<TD STYLE="width: 5.3pt"></TD><TD STYLE="width: 19.15pt">(11)</TD><TD><FONT STYLE="letter-spacing: -0.05pt">SELECTED QUARTERLY DATA</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt; text-align: right"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">(in thousands, except per share amounts)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="19" STYLE="text-align: center; border-bottom: Black 1pt solid">Year Ended December 31, 2019</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 STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">March 31,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">June 30,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">December 31,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 35%; text-align: left">Total investment income</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">16</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">91</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">90</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">154</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">351</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">Net investment loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(989</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(798</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(826</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(775</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,388</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Increase 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: rgb(204,238,255)">
    <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">2,977</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,300</TD><TD STYLE="text-align: left">&nbsp;</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">(3,115</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,175</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 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="font-weight: 400; font-style: normal; text-align: left">Basic and diluted earnings per share <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt; font-style: normal; font-weight: 400"><SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.22</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.10</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.07</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.23</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.16</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 9pt Sans-Serif; margin: 0.5pt 0 0; color: Red"><B></B></P>

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

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

<P STYLE="font: 9pt Sans-Serif; margin: 0.5pt 0 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">(in thousands, except per share amounts)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="19" STYLE="text-align: center; border-bottom: Black 1pt solid">Year Ended December 31, 2018</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 STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">March 31,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">June 30,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">December 31,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 35%; text-align: left">Total investment income</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">113</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">117</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">85</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">164</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">480</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">Net investment loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(991</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(936</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(722</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(906</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,555</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Increase 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: rgb(204,238,255)">
    <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">56</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">793</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">2,358</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(3,156</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">51</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 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="font-weight: 400; font-style: normal; text-align: left">Basic and diluted earnings per share <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt; font-style: normal; font-weight: 400"><SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.00</TD><TD STYLE="text-align: left">&nbsp;</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">0.17</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.23</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.00</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 9pt Sans-Serif; margin: 0.5pt 0 0; color: Red"><B></B></P>

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

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

<P STYLE="font: 9pt Sans-Serif; margin: 0.5pt 0 0; color: Red"><B></B></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0.5pt 0 0; color: Red"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid">(in thousands, except per share amounts)</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="19" STYLE="text-align: center; border-bottom: Black 1pt solid">Year Ended December 31, 2017</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 STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">March 31,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">June 30,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">September 30,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">December 31,</TD><TD STYLE="padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center; border-bottom: Black 1pt solid">Total</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 35%; text-align: left">Total investment income</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">190</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">2,637</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">112</TD><TD STYLE="width: 1%; text-align: left">&nbsp;</TD><TD STYLE="width: 2%">&nbsp;</TD>
    <TD STYLE="width: 1%; text-align: left">$</TD><TD STYLE="width: 9%; text-align: right">121</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">3,059</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">Net investment loss</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(2,480</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(333</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(441</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(760</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(4,013</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Increase 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: rgb(204,238,255)">
    <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">(1,802</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">87</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(121</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,005</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(830</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: 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: rgb(204,238,255)">
    <TD STYLE="font-weight: 400; font-style: normal; text-align: left">Basic and diluted earnings per share <FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 11pt; font-style: normal; font-weight: 400"><SUP>(1)</SUP></FONT></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.14</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.01</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.01</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">0.07</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(0.07</TD><TD STYLE="text-align: left">)</TD></TR>
</TABLE>



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

<P STYLE="font: 9pt Sans-Serif; margin: 0.5pt 0 0; color: Red"><B></B></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0.5pt 0 0; color: Red"><B></B></P>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0 8.85pt 0 5.3pt"><FONT STYLE="font-size: 5pt"><B>(</B>1)</FONT> <FONT STYLE="font-size: 7.5pt; letter-spacing: -0.05pt">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</FONT>
<FONT STYLE="font-size: 7.5pt">of <FONT STYLE="letter-spacing: -0.05pt">weighted average shares outstanding and the effects of
rounding.</FONT></FONT></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 5.5pt Times New Roman, Times, Serif; margin: 0.45pt 0 0"></P>

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<TD STYLE="width: 5.3pt"></TD><TD STYLE="width: 19.15pt">(12)</TD><TD><FONT STYLE="letter-spacing: -0.05pt">SUBSEQUENT EVENTS</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 8.85pt 0 5.3pt; text-indent: 27pt"><FONT STYLE="letter-spacing: -0.05pt">Our
Management performed an evaluation of the Fund&rsquo;s activity through the date the financial statements were issued, noting the
following subsequent events:</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.3pt"><FONT STYLE="letter-spacing: -0.05pt">On January 2, 2019,
we sold our holding in $29.0 million in U. S. Treasury</FONT> Bills <FONT STYLE="letter-spacing: -0.05pt">and we repaid</FONT>
our <FONT STYLE="letter-spacing: -0.05pt">year-end margin </FONT>loan.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.3pt">Since February 2020, with the spread
of the coronavirus, we have implemented a number of directives to ensure the safety of our personnel and the continuity of our
operations.&nbsp; We have suspended all in-person meetings and have required all employees and service providers to work from a
remote location.&nbsp; We utilize a cloud-based storage and retrieval system for our records and can communicate electronically
or by telephone with third parties such as our financial institutions, legal and accounting advisors, and our portfolio companies.&nbsp;
We intend to monitor the situation as it evolves and take additional precautions as necessary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.3pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.3pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.3pt">On January 30, 2020, the World Health Organization (&ldquo;WHO&rdquo;)
announced a global health emergency because of a new strain of coronavirus (the &ldquo;COVID-19 outbreak&rdquo;) and the risks
to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the
COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The pandemic has adversely affected global economic
activity and greatly contributed to significant deterioration and volatility in financial markets across the world, including signals
of an uptick in illiquid or inactive markets, which may cause a change in valuation methodology and/or technique as well as the
observability of inputs to be used in valuation techniques. Depending on the severity and length of the outbreak, this pandemic
could present material uncertainty and risk with respect to the Fund, including an adverse effect on its portfolio companies&rsquo;
operations and their financial condition, the ability of such portfolio companies to provide underlying financial information in
a timely manner, expected declines in the valuation of its investments in the portfolio companies, collectability of amounts due
from others, and its overall performance. The rapid development and fluidity of this situation precludes management from making
an estimate as to the ultimate adverse impact of the pandemic on the value of the Fund&rsquo;s investments, liquidity, financial
condition, and results of operations for fiscal year 2020.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.3pt">The adverse economic effects of the COVID-19 outbreak have
materially decreased the fair value of certain investments of the Fund due to the continued material adverse impact on economic
and market conditions of global economic slowdown. In addition, in March 2020, members of OPEC failed to agree on oil production
levels, which is expected to result in an increased supply of oil and has led to a substantial decline in oil prices and an increasingly
volatile market.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.3pt">Although the Company cannot estimate the length or
gravity of the impact of the COVID-19 outbreak or reduced oil prices at this time, if the pandemic continues, it will have a
material adverse effect on the Fund&rsquo;s results of future operations, financial position, and liquidity in fiscal
year 2020.&nbsp;</P>


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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.1pt 0 0"></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><A NAME="a_014"></A><FONT STYLE="font-style: normal; letter-spacing: -0.05pt">Item
9.</FONT> <FONT STYLE="letter-spacing: -0.05pt">Changes</FONT> in <FONT STYLE="letter-spacing: -0.05pt">and Disagreements with
Accountants on Accounting and Financial Disclosure</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.3pt"><FONT STYLE="letter-spacing: -0.05pt">None.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><A NAME="a_015"></A><B>Item 9A. <I>Controls
and</I></B></FONT><B><I> <FONT STYLE="letter-spacing: -0.1pt">Procedures</FONT></I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 27pt"><FONT STYLE="letter-spacing: -0.05pt">Attached
as exhibits </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>of <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>a <FONT STYLE="letter-spacing: -0.05pt">more
complete understanding </FONT>of <FONT STYLE="letter-spacing: -0.05pt">the topics presented.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Evaluation
of Disclosure Controls and Procedures</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.15pt 0 5.3pt; text-indent: 27pt">We <FONT STYLE="letter-spacing: -0.05pt">maintain
disclosure controls and procedures that are designed </FONT>to <FONT STYLE="letter-spacing: -0.05pt">ensure that information required
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">be disclosed in our reports filed pursuant to the Exchange </FONT>Act <FONT STYLE="letter-spacing: -0.05pt">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, </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>in</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">evaluating the cost-benefit
relationship </FONT>of <FONT STYLE="letter-spacing: -0.05pt">possible controls and procedures.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 27pt"><FONT STYLE="letter-spacing: -0.05pt">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, 2019. Based on the foregoing, our Chief Executive Officer and Chief
Financial Officer concluded that our disclosure controls and procedures</FONT> <FONT STYLE="letter-spacing: -0.1pt">were</FONT>
<FONT STYLE="letter-spacing: -0.05pt">effective.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">Management
Report on Internal Control Over Financial Reporting</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 26.95pt"><FONT STYLE="letter-spacing: -0.05pt">Our
Management is responsible for establishing and maintaining adequate internal control over financial reporting</FONT> to <FONT STYLE="letter-spacing: -0.05pt">provide
reasonable assurance regarding the reliability</FONT> of <FONT STYLE="letter-spacing: -0.05pt">our financial reporting and the
preparation of financial statements for external purposes </FONT>in <FONT STYLE="letter-spacing: -0.05pt">accordance with generally
accepted accounting principles. Internal control over financial reporting includes those policies and procedures that</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 0in"><FONT STYLE="letter-spacing: -0.05pt">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7pt">&nbsp;
</FONT>pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions</FONT>
of the <FONT STYLE="letter-spacing: -0.05pt">assets</FONT> of <FONT STYLE="letter-spacing: -0.05pt">the company; (ii) provide reasonable
assurance that transactions are recorded as necessary</FONT> to <FONT STYLE="letter-spacing: -0.05pt">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 </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Management and directors of the Fund;
and (iii) provide reasonable assurance regarding prevention</FONT> or <FONT STYLE="letter-spacing: -0.05pt">timely detection</FONT>
of <FONT STYLE="letter-spacing: -0.05pt">unauthorized acquisition, use</FONT> or <FONT STYLE="letter-spacing: -0.05pt">disposition
of the Fund&rsquo;s assets that could have </FONT>a <FONT STYLE="letter-spacing: -0.05pt">material effect on the financial statements.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 9.45pt 0 5.3pt; text-indent: 27.35pt"><FONT STYLE="letter-spacing: -0.05pt">We
assessed our internal control over financial reporting as </FONT>of <FONT STYLE="letter-spacing: -0.05pt">December 31, 2019, the
end of our most </FONT><FONT STYLE="letter-spacing: -0.1pt">recent</FONT> <FONT STYLE="letter-spacing: -0.05pt">fiscal year. We
based our assessment on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">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</FONT>
by <FONT STYLE="letter-spacing: -0.05pt">testing and monitoring performed both </FONT>by a <FONT STYLE="letter-spacing: -0.05pt">third-party
consultant and our accounting department.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 13.7pt 0 5.3pt; text-indent: 27.35pt"><FONT STYLE="letter-spacing: -0.05pt">Based
on our assessment, </FONT>we <FONT STYLE="letter-spacing: -0.05pt">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</FONT> of <FONT STYLE="letter-spacing: -0.05pt">Directors.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><A NAME="a_016"></A><FONT STYLE="letter-spacing: -0.05pt"><B>Item 9B. <I>Other</I></B></FONT><B><I>
<FONT STYLE="letter-spacing: -0.1pt">Information</FONT></I></B></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.3pt"><FONT STYLE="letter-spacing: -0.05pt">None.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 222.5pt; text-align: center"></P>


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

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

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><A NAME="a_017"></A>PART III</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="font-style: normal; letter-spacing: -0.05pt"><A NAME="a_018"></A>Item
10.</FONT> <FONT STYLE="letter-spacing: -0.05pt">Directors, Executive Officers and Corporate Governance</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 12.6pt 0 5.3pt; text-indent: 27pt"><FONT STYLE="letter-spacing: -0.05pt">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 </FONT>by <FONT STYLE="letter-spacing: -0.05pt">reference to our Definitive Proxy Statement
for the 2020 Annual Meeting of Stockholders, to </FONT>be <FONT STYLE="letter-spacing: -0.05pt">filed pursuant to Regulation 14A
under the Securities Exchange Act of 1934, as amended, </FONT>on <FONT STYLE="letter-spacing: -0.05pt">or prior to April 30, 2020
(the &ldquo;2020 Proxy Statement&rdquo;).</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 10.1pt 0 5.3pt; text-indent: 27pt"><FONT STYLE="letter-spacing: -0.05pt">We
have adopted </FONT>a <FONT STYLE="letter-spacing: -0.05pt">code of business conduct and ethics applicable </FONT>to <FONT STYLE="letter-spacing: -0.05pt">our
directors, officers (including our principal executive officer, principal financial officer and controller) and employees, known
as the Code </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Business Conduct and Ethics. </FONT>A <FONT STYLE="letter-spacing: -0.05pt">copy
of the Code of Business Conduct and Ethics </FONT>is <FONT STYLE="letter-spacing: -0.05pt">available </FONT>to <FONT STYLE="letter-spacing: -0.05pt">any
person, without charge, upon request addressed to Equus Total Return, Inc., Attention: Corporate Secretary, 700 Louisiana Street,
48<FONT STYLE="font-size: 7pt">th</FONT> Floor, Houston, TX 77002. </FONT>In <FONT STYLE="letter-spacing: -0.05pt">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, </FONT>or <FONT STYLE="letter-spacing: -0.05pt">controller, we intend</FONT> to <FONT STYLE="letter-spacing: -0.05pt">disclose
the same </FONT>on <FONT STYLE="letter-spacing: -0.05pt">its website at www.equuscap.com.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><A NAME="a_019"></A><B>Item 11. <I>Executive
Compensation</I></B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.05pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.65pt"><FONT STYLE="letter-spacing: -0.05pt">Information regarding
Executive Compensation is incorporated by reference to our 2020 Proxy Statement.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="font-style: normal; letter-spacing: -0.05pt"><A NAME="a_020"></A>Item
12.</FONT> <FONT STYLE="letter-spacing: -0.05pt">Security Ownership </FONT>of <FONT STYLE="letter-spacing: -0.05pt">Certain Beneficial
Owners and Management and Related Stockholder Matters</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 30.05pt 0 5.3pt; text-indent: 27pt"><FONT STYLE="letter-spacing: -0.05pt">Information
regarding Security Ownership of </FONT>Certain <FONT STYLE="letter-spacing: -0.05pt">Beneficial Owners and Management and Securities
Authorized for Issuance under Equity Compensation Plans is incorporated by reference to our 2020 Proxy Statement.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="font-style: normal; letter-spacing: -0.05pt"><A NAME="a_021"></A>Item
13.</FONT> <FONT STYLE="letter-spacing: -0.05pt">Certain Relationships and Related Transactions and Director Independence</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.3pt"><FONT STYLE="letter-spacing: -0.05pt">Information regarding
Certain Relationships and Related Transactions is incorporated by reference </FONT>to <FONT STYLE="letter-spacing: -0.05pt">our
2020 Proxy Statement.</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><A NAME="a_022"></A><FONT STYLE="font-style: normal; letter-spacing: -0.05pt">Item
14.</FONT> <FONT STYLE="letter-spacing: -0.05pt">Principal Accountant Fees and Services</FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 32.3pt"><FONT STYLE="letter-spacing: -0.05pt">Information regarding
Principal Accountant Fees and Services is incorporated</FONT> by <FONT STYLE="letter-spacing: -0.05pt">reference to our 2020 Proxy
Statement.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><A NAME="a_023"></A>PART </FONT>IV</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><A NAME="a_024"></A><FONT STYLE="font-style: normal; letter-spacing: -0.05pt">Item
15.</FONT> <FONT STYLE="letter-spacing: -0.05pt">Exhibits and Financial Statement Schedules</FONT></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0.2pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.45pt"><FONT STYLE="letter-spacing: -0.05pt"><B>(a)(1) The
following financial statement </B></FONT><B><FONT STYLE="letter-spacing: -0.1pt">schedules</FONT> <FONT STYLE="letter-spacing: -0.05pt">are
filed </FONT><FONT STYLE="letter-spacing: -0.1pt">herewith:</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 14pt 0 0 24.45pt"><FONT STYLE="letter-spacing: -0.05pt">Schedule 12-14
Investments in and Advances </FONT>to <FONT STYLE="letter-spacing: -0.05pt">Affiliates&#9;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt"><B><A NAME="a_025"></A>Item 16. <I>Form
10-K Summary</I></B></FONT></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.55pt 0 0"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt; text-align: justify"><FONT STYLE="letter-spacing: -0.05pt">Not
Included.</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 205.3pt 0 207.15pt; text-align: center">&nbsp;</P>


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<P STYLE="font: 10pt 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>SCHEDULE 12-14</B></P>

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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: center"><B>SCHEDULE OF INVESTMENTS IN AND ADVANCES
TO AFFILIATES</B></P>


<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0"></P>

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

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%; border-collapse: collapse; font: 11pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt; font-weight: bold; font-style: italic; width: 45%"><FONT STYLE="font-size: 8pt">(in thousands)</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 11%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 15%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 6%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 3%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 6%; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 0.5pt solid; text-align: center; vertical-align: bottom"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Year
                                         Ended</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">December
                                         31, 2019</FONT></P></TD>
    <TD><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; 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><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; 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><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; 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><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; 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></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Portfolio Company</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Investment <FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal"><B><SUP>(a)</SUP></B></FONT></FONT></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; 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; border-top-color: Black; border-top-width: 0.5pt; vertical-align: bottom"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Amount
                                         of Interest</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">or
                                         Dividend</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Credited
                                         to Income<FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal"><B><SUP>(d)</SUP></B></FONT></FONT></P></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; 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: bottom"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">As
                                         of</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">December
                                         31, 2018</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Fair
                                         Value</FONT></P></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="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: bottom; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Gross</FONT></P>
                                                      <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Additions<FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal"><B><SUP>(b)</SUP></B></FONT></FONT></P></TD>
    <TD STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="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: bottom; border-bottom: Black 1pt solid"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Gross</FONT></P>
                                                      <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Reductions<FONT STYLE="font-family: Times New Roman, Times, Serif; font-style: normal"><B><SUP>(c)</SUP></B></FONT></FONT></P></TD>
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; 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: bottom"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">As
                                         of</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">December
                                         31, 2019</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 8pt">Fair
                                         Value</FONT></P></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Control
    investments:&nbsp;&nbsp;Majority-owned</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: right; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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="font-size: 7.5pt; vertical-align: top"><FONT STYLE="font-size: 8pt">Equus Energy, LLC</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top"><FONT STYLE="font-size: 8pt">Member interest (100%)</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,000</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,000)</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top">$<FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,000</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="2" STYLE="font-size: 7.5pt; vertical-align: top"><FONT STYLE="font-size: 8pt">Equus Media Development Company,
    LLC</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top"><FONT STYLE="font-size: 8pt">Member interest (100%)</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></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;&nbsp;&nbsp;&nbsp;<FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;210</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(112)</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- </FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; 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:&nbsp;&nbsp;Majority-owned</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,210</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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;&nbsp;&nbsp;(1,000)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(211)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,000</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; text-align: left"><FONT STYLE="font-size: 8pt">Total
    Control investments</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,210</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,000)</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(211)</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,000</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; text-align: left; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">Affiliate
    Investments</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; border-bottom: Black 1pt solid; text-align: right; border-top: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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="font-size: 7.5pt; font-weight: bold; vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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></TR>
<TR STYLE="background-color: White">
    <TD STYLE="font-size: 7.5pt; vertical-align: top"><FONT STYLE="font-size: 8pt">PalletOne, Inc.</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top"><FONT STYLE="font-size: 8pt">350,000&nbsp;shares&nbsp;of&nbsp;common stock</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,500</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,000</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,500</FONT></TD></TR>
<TR STYLE="background-color: rgb(204,238,255)">
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; vertical-align: top; border-top: Black 1pt solid; border-bottom: Black 1pt solid; text-align: left"><FONT STYLE="font-size: 8pt">Total
    Affiliate investments</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,500</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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;&nbsp;&nbsp;&nbsp;6,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-top: Black 1pt solid; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&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">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 7.5pt; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26,500</FONT></TD></TR>
<TR STYLE="background-color: White">
    <TD COLSPAN="3" STYLE="font-size: 7.5pt; font-weight: bold; text-align: left; border-bottom: Black 1pt solid; vertical-align: top"><FONT STYLE="font-size: 8pt">Total
    Investments In and Advances to Affiliates</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29,710</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,000</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(211)</FONT></TD>
    <TD STYLE="vertical-align: bottom; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">&nbsp;</FONT></TD>
    <TD STYLE="text-align: center; vertical-align: top; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 8pt">$</FONT></TD>
    <TD STYLE="font-size: 7.5pt; vertical-align: top; border-bottom: Black 1pt solid; text-align: right"><FONT STYLE="font-size: 8pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34,500</FONT></TD></TR>
</TABLE>
<P STYLE="font: 9pt Sans-Serif; margin: 0.1pt 0 0; color: Red"><B></B></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0.1pt 0 0; color: Red"><B>&nbsp;</B></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0.1pt 0 0; color: Red"><B></B></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 6.3pt"><FONT STYLE="letter-spacing: -0.05pt">&nbsp;</FONT></P>

<P STYLE="font: 7.5pt Times New Roman, Times, Serif; margin: 0 0 0 6.3pt"><FONT STYLE="letter-spacing: -0.05pt">This schedule should
be read</FONT> in <FONT STYLE="letter-spacing: -0.05pt">conjunction with our Financial Statements, including our <I>Schedule </I></FONT><I>of
<FONT STYLE="letter-spacing: -0.05pt">Investments</FONT></I><FONT STYLE="letter-spacing: -0.05pt"> and Notes</FONT> 3 <FONT STYLE="letter-spacing: -0.05pt">and</FONT>
4 <FONT STYLE="letter-spacing: -0.05pt">to the Financial Statements.</FONT></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/104% Times New Roman, Times, Serif; margin-top: 0.2pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 19.75pt"></TD><TD STYLE="width: 15.05pt"><FONT STYLE="font-size: 7.5pt">(a)</FONT></TD><TD STYLE="text-align: justify; padding-right: 17.3pt"><FONT STYLE="font-size: 7.5pt; letter-spacing: -0.05pt">Common stock, warrants,
options and equity interests are generally non-income producing and restricted. In some cases, preferred stock may also</FONT>
<FONT STYLE="font-size: 7.5pt">be <FONT STYLE="letter-spacing: -0.05pt">non-income producing. The principal amount for debt and
the number of shares of common stock and preferred stock</FONT> is <FONT STYLE="letter-spacing: -0.05pt">shown</FONT> in <FONT STYLE="letter-spacing: -0.05pt">the
Schedule of Portfolio Securities as</FONT> of <FONT STYLE="letter-spacing: -0.05pt">December 31, 2019.</FONT></FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/104% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 19.35pt"></TD><TD STYLE="width: 15.45pt"><FONT STYLE="font-size: 7.5pt">(b)</FONT></TD><TD STYLE="text-align: justify; padding-right: 13.25pt"><FONT STYLE="font-size: 7.5pt; letter-spacing: -0.05pt">Gross additions
include increases</FONT> <FONT STYLE="font-size: 7.5pt">in <FONT STYLE="letter-spacing: -0.05pt">investments resulting from new
portfolio company investments, paid-in-kind interest or dividends, the amortization</FONT> of <FONT STYLE="letter-spacing: -0.05pt">discounts
and fees, and</FONT> the <FONT STYLE="letter-spacing: -0.05pt">exchange </FONT>of <FONT STYLE="letter-spacing: -0.05pt">one </FONT>or
<FONT STYLE="letter-spacing: -0.05pt">more existing securities for one </FONT>or <FONT STYLE="letter-spacing: -0.05pt">more new
securities. Gross additions also include net increases</FONT> in <FONT STYLE="letter-spacing: -0.05pt">unrealized appreciation
or net decreases </FONT>in <FONT STYLE="letter-spacing: -0.05pt">unrealized depreciation.</FONT></FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/104% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 19.75pt"></TD><TD STYLE="width: 15.05pt"><FONT STYLE="font-size: 7.5pt">(c)</FONT></TD><TD STYLE="padding-right: 11.9pt"><FONT STYLE="font-size: 7.5pt; letter-spacing: -0.05pt">Gross reductions include decreases</FONT>
<FONT STYLE="font-size: 7.5pt">in <FONT STYLE="letter-spacing: -0.05pt">investments resulting from principal collections related</FONT>
to <FONT STYLE="letter-spacing: -0.05pt">investment repayments</FONT> or <FONT STYLE="letter-spacing: -0.05pt">sales and the exchange
</FONT>of <FONT STYLE="letter-spacing: -0.05pt">one </FONT>or <FONT STYLE="letter-spacing: -0.05pt">more existing securities for
one or more new securities. Gross reductions also include net increases </FONT>in <FONT STYLE="letter-spacing: -0.05pt">unrealized
depreciation or net decreases </FONT>in <FONT STYLE="letter-spacing: -0.05pt">unrealized appreciation.</FONT></FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt/104% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 19.35pt"></TD><TD STYLE="width: 15.45pt"><FONT STYLE="font-size: 7.5pt">(d)</FONT></TD><TD STYLE="padding-right: 25.9pt"><FONT STYLE="font-size: 7.5pt; letter-spacing: -0.05pt">Represents the total amount of interest
or dividends credited to income for the portion</FONT> <FONT STYLE="font-size: 7.5pt">of <FONT STYLE="letter-spacing: -0.05pt">the
year an investment was</FONT> a <FONT STYLE="letter-spacing: -0.05pt">control investment (more than 25% owned) or </FONT>an <FONT STYLE="letter-spacing: -0.05pt">affiliate
investment (5%</FONT> to <FONT STYLE="letter-spacing: -0.05pt">25% owned), respectively. </FONT>All <FONT STYLE="letter-spacing: -0.05pt">dividend
income</FONT> is <FONT STYLE="letter-spacing: -0.05pt">non-cash unless otherwise noted.</FONT></FONT></TD></TR></TABLE>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 4.1pt 215.3pt 0; text-align: center">&nbsp;</P>


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

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

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0 0 0 5.3pt"><FONT STYLE="letter-spacing: -0.05pt">(a)(2) Exhibits</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.2pt 0 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 7.85pt"></TD><TD STYLE="width: 28.5pt"><FONT STYLE="letter-spacing: -0.05pt">3.</FONT></TD><TD><FONT STYLE="letter-spacing: -0.05pt">Articles of Incorporation and by-laws.</FONT></TD></TR></TABLE>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(a)</TD><TD STYLE="padding-right: 7.65pt"><FONT STYLE="color: purple; letter-spacing: -0.05pt"><U>Restated Certificate of Incorporation
of the Fund, as amended.</U></FONT> <FONT STYLE="letter-spacing: -0.05pt">[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: 12pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(b)</TD><TD STYLE="padding-right: 16.05pt"><FONT STYLE="color: purple; letter-spacing: -0.05pt"><U>Certificate </U></FONT><U><FONT STYLE="color: purple">of
<FONT STYLE="letter-spacing: -0.05pt">Merger dated June 30, 1993, between the Fund and Equus Investments Incorporated.</FONT></FONT></U>
<FONT STYLE="letter-spacing: -0.05pt">[Incorporated by reference</FONT> to <FONT STYLE="letter-spacing: -0.05pt">Exhibit 3(b)</FONT>
to <FONT STYLE="letter-spacing: -0.05pt">Registrant&rsquo;s Annual Report</FONT> on <FONT STYLE="letter-spacing: -0.05pt">Form
10-K for the year ended December 31, 2007.]</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(c)</TD><TD STYLE="padding-right: 11.1pt"><FONT STYLE="color: purple; letter-spacing: -0.05pt"><U>Amended and Restated Bylaws </U></FONT><U><FONT STYLE="color: purple">of
<FONT STYLE="letter-spacing: -0.05pt">the Fund.</FONT></FONT></U> <FONT STYLE="letter-spacing: -0.05pt">[Incorporated by reference
to Exhibit 3(b) to Registrant&rsquo;s Current Report </FONT>on <FONT STYLE="letter-spacing: -0.05pt">Form 8-K filed on December
16, 2010.]</FONT></TD></TR></TABLE>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0.4pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 7.85pt"></TD><TD STYLE="width: 28.45pt"><FONT STYLE="letter-spacing: -0.05pt">10.</FONT></TD><TD><FONT STYLE="letter-spacing: -0.05pt">Material Contracts.</FONT></TD></TR></TABLE>

<P STYLE="font: 13pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.3pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(c)</TD><TD STYLE="padding-right: 7.65pt"><FONT STYLE="color: purple; letter-spacing: -0.1pt"><U>Safekeeping</U></FONT><U> <FONT STYLE="color: purple; letter-spacing: -0.05pt">Agreement
between </FONT></U><U><FONT STYLE="color: purple; letter-spacing: -0.1pt">the</FONT></U><U> <FONT STYLE="color: purple; letter-spacing: -0.05pt">Fund
and Amegy Bank dated August 16, 2008. </FONT></U><FONT STYLE="letter-spacing: -0.05pt">[Incorporated by reference to Exhibit 10(c)</FONT>
to <FONT STYLE="letter-spacing: -0.05pt">Registrant&rsquo;s Annual Report </FONT>on <FONT STYLE="letter-spacing: -0.05pt">Form
10-K for </FONT>the year <FONT STYLE="letter-spacing: -0.05pt">ended December 31, 2008.]</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.1pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(d)</TD><TD STYLE="padding-right: 23.05pt"><FONT STYLE="color: purple; letter-spacing: -0.05pt"><U>Form </U></FONT><U><FONT STYLE="color: purple">of
<FONT STYLE="letter-spacing: -0.05pt">Indemnification Agreement between the Fund and certain of its directors and officers</FONT></FONT></U><FONT STYLE="letter-spacing: -0.05pt">.
[Incorporated by reference to Exhibit 10(d) to Registrant&rsquo;s Annual Report</FONT> on <FONT STYLE="letter-spacing: -0.05pt">Form
10-K for </FONT>the <FONT STYLE="letter-spacing: -0.05pt">year ended December 31, 2011]</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(e)</TD><TD STYLE="padding-right: 28pt"><FONT STYLE="color: #0065CC; letter-spacing: -0.05pt"><U>Form of Release </U></FONT><U><FONT STYLE="color: #0065CC; letter-spacing: -0.1pt">Agreement</FONT></U><U>
<FONT STYLE="color: #0065CC; letter-spacing: -0.05pt">between the Fund and </FONT></U><U><FONT STYLE="color: #0065CC; letter-spacing: -0.1pt">certain</FONT></U><U>
<FONT STYLE="color: #0065CC; letter-spacing: -0.05pt">of its officers and former </FONT></U><U><FONT STYLE="color: #0065CC; letter-spacing: -0.1pt">officers</FONT></U><FONT STYLE="letter-spacing: -0.1pt">.</FONT>
<FONT STYLE="letter-spacing: -0.05pt">[Incorporated </FONT>by <FONT STYLE="letter-spacing: -0.05pt">reference </FONT>to <FONT STYLE="letter-spacing: -0.05pt">Exhibit
10(h) to Registrant&rsquo;s Annual Report</FONT> on <FONT STYLE="letter-spacing: -0.05pt">Form 10-K for </FONT>the <FONT STYLE="letter-spacing: -0.05pt">year
ended December 31, 2004.]</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(f)</TD><TD STYLE="padding-right: 25.55pt"><FONT STYLE="color: #0065CC"><U>Code of Ethics of the Fund</U></FONT> <FONT STYLE="letter-spacing: -0.05pt">(Rule
17j-1) [Incorporated </FONT>by <FONT STYLE="letter-spacing: -0.05pt">reference </FONT>to <FONT STYLE="letter-spacing: -0.05pt">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: 12pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(g)</TD><TD STYLE="padding-right: 37.7pt"><FONT STYLE="color: #0065CC; letter-spacing: -0.05pt"><U>Share Exchange </U></FONT><U><FONT STYLE="color: #0065CC; letter-spacing: -0.1pt">Agreement</FONT></U><U>
<FONT STYLE="color: #0065CC; letter-spacing: -0.05pt">between the Fund and MVC Capital, Inc., dated May 14, 2014</FONT></U> <FONT STYLE="letter-spacing: -0.05pt">[Incorporated
by reference to Exhibit 10.1 to Registrant&rsquo;s Current </FONT>Report on <FONT STYLE="letter-spacing: -0.05pt">Form</FONT> 8-K
<FONT STYLE="letter-spacing: -0.05pt">filed</FONT> <FONT STYLE="letter-spacing: -0.1pt">on</FONT> <FONT STYLE="letter-spacing: -0.05pt">May
15, 2014.]</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0.2pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(h)</TD><TD STYLE="padding-right: 23.05pt"><FONT STYLE="color: purple; letter-spacing: -0.05pt"><U>Plan</U></FONT><U> <FONT STYLE="color: purple">of
<FONT STYLE="letter-spacing: -0.05pt">Reorganization of the Registrant, dated as of May 13, 2014 </FONT></FONT></U><FONT STYLE="letter-spacing: -0.05pt">[Incorporated
by reference </FONT>to <FONT STYLE="letter-spacing: -0.05pt">Exhibit 2.1 to Registrant&rsquo;s Current Report</FONT> on <FONT STYLE="letter-spacing: -0.05pt">Form
8-K filed on May 15, 2014.]</FONT></TD></TR></TABLE>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/11.2pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(i)</TD><TD STYLE="padding-right: 28pt"><FONT STYLE="color: #0065CC; letter-spacing: -0.05pt"><U>2016 Equity Incentive Plan, adopted June
13, 2016</U></FONT> <FONT STYLE="letter-spacing: -0.05pt">[Incorporated by reference to Exhibit </FONT>1 <FONT STYLE="letter-spacing: -0.05pt">to
Registrant&rsquo;s Definitive Proxy Statement filed on May 5, 2016.]</FONT></TD></TR></TABLE>

<P STYLE="font: 11pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 11.1pt"></TD><TD STYLE="width: 17.1pt"><FONT STYLE="letter-spacing: -0.05pt">31.</FONT></TD><TD><FONT STYLE="letter-spacing: -0.05pt">R<B>u</B>le 13a-14(a)/15d-14(a) Certifications</FONT></TD></TR></TABLE>

<P STYLE="font: 12.5pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(1)</TD><TD><FONT STYLE="color: #0065CC; letter-spacing: -0.05pt"><U>Certification </U></FONT><U><FONT STYLE="color: #0065CC">by <FONT STYLE="letter-spacing: -0.1pt">Chief
Executive</FONT> <FONT STYLE="letter-spacing: -0.05pt">Officer</FONT></FONT></U></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 3.95pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(2)</TD><TD><FONT STYLE="color: #0065CC; letter-spacing: -0.05pt"><U>Certification </U></FONT><U><FONT STYLE="color: #0065CC">by <FONT STYLE="letter-spacing: -0.1pt">Chief</FONT>
<FONT STYLE="letter-spacing: -0.05pt">Financial Officer</FONT></FONT></U></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.3pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 3.7pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 7.85pt"></TD><TD STYLE="width: 28.5pt"><FONT STYLE="letter-spacing: -0.05pt">32.</FONT></TD><TD><FONT STYLE="letter-spacing: -0.05pt">Section 1350 Certification</FONT></TD></TR></TABLE>

<P STYLE="font: 12.5pt Times New Roman, Times, Serif; margin: 0.05pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(1)</TD><TD><FONT STYLE="color: #0065CC; letter-spacing: -0.05pt"><U>Certification </U></FONT><U><FONT STYLE="color: #0065CC">by <FONT STYLE="letter-spacing: -0.1pt">Chief
Executive</FONT> <FONT STYLE="letter-spacing: -0.05pt">Officer</FONT></FONT></U></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 3.5pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(2)</TD><TD><FONT STYLE="color: #0065CC; letter-spacing: -0.05pt"><U>Certification </U></FONT><U><FONT STYLE="color: #0065CC">by <FONT STYLE="letter-spacing: -0.1pt">Chief</FONT>
<FONT STYLE="letter-spacing: -0.05pt">Financial Officer</FONT></FONT></U></TD></TR></TABLE>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.25pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 3.7pt; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 8.3pt"></TD><TD STYLE="width: 28.5pt">99.</TD><TD><FONT STYLE="letter-spacing: -0.05pt">Equus Energy, LLC and Subsidiary</FONT></TD></TR></TABLE>

<P STYLE="font: 12.5pt Times New Roman, Times, Serif; margin: 0.15pt 0 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt/98% Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0"><TR STYLE="vertical-align: top">
<TD STYLE="width: 33.8pt"></TD><TD STYLE="width: 28.5pt">(1)</TD><TD STYLE="padding-right: 12.2pt"><FONT STYLE="color: purple; letter-spacing: -0.05pt"><U>Consolidated Financial Statements </U></FONT><U><FONT STYLE="color: purple">of
<FONT STYLE="letter-spacing: -0.05pt">Equus Energy, LLC and Subsidiary as of December 31, 2019 and 2018 and for the years ended
December 31, 2019, 2018 and 2017 </FONT></FONT></U><FONT STYLE="letter-spacing: -0.05pt">[Incorporated</FONT> by <FONT STYLE="letter-spacing: -0.05pt">reference
</FONT>to <FONT STYLE="letter-spacing: -0.05pt">Exhibit 99.1</FONT> to <FONT STYLE="letter-spacing: -0.05pt">Registrant&rsquo;s
Current Report on Form 10-K filed on March 30, 2020.]</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0.55pt 0 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 283.5pt 0 284.35pt; text-align: center"></P>


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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 6.35pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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 </FONT>by <FONT STYLE="letter-spacing: -0.05pt">the undersigned, thereunto duly authorized.</FONT></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.1in; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in; line-height: 115%">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="line-height: 115%; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">EQUUS TOTAL RETURN, INC.</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>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Date: March 30, 2020</FONT></TD>
    <TD STYLE="padding-left: 0.1in; line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 0.1in; line-height: 115%">&nbsp;</TD>
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">S</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/ JOHN A. HARDY</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <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; line-height: 115%">&nbsp;</TD>
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>John A. Hardy</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-left: 0.1in; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; padding-left: 0.1in; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-left: 0.1in; line-height: 115%">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom">
        <P STYLE="font: 7.5pt/115% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>Chief Executive Officer </B></P>
        <P STYLE="font: 7.5pt/115% Times New Roman, Times, Serif; margin: 0; text-align: center"><B>(Principal Executive Officer)</B></P></TD></TR>
</TABLE>
<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 7pt Times New Roman, Times, Serif; margin: 0"></P>

<P STYLE="font: 9.5pt Times New Roman, Times, Serif; margin: 0.3pt 0 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 25.9pt 0 6.3pt; text-indent: 24.5pt"><FONT STYLE="letter-spacing: -0.05pt">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</FONT> in <FONT STYLE="letter-spacing: -0.05pt">the capacities and on the dates indicated.</FONT></P>

<P STYLE="font: 6.5pt Times New Roman, Times, Serif; margin: 0.35pt 0 0">&nbsp;</P>

<P STYLE="font: 6.5pt Times New Roman, Times, Serif; margin: 0.35pt 0 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="white-space: nowrap; width: 29%; border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><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 STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>Title</B></FONT></TD>
    <TD STYLE="border-bottom: black 1pt solid; padding-left: 0.1in; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>Date</B></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 STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">S</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/ FRASER ATKINSON</FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Director</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">March 30, 2020</FONT></TD></TR>
<TR>
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>Fraser Atkinson</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">S</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/ KENNETH I. DENOS</FONT></TD>
    <TD STYLE="vertical-align: top; padding-left: 9pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Director, Secretary and Chief Compliance Officer</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">March 30, 2020</FONT></TD></TR>
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    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>Kenneth I. Denos</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">S</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/ HENRY W. HANKINSON</FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Director</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">March 30, 2020</FONT></TD></TR>
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    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>Henry W. Hankinson</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
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    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">S</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/ ROBERT L. KNAUSS</FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Director</FONT></TD>
    <TD STYLE="white-space: nowrap; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">March 30, 2020</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>Robert L. Knauss</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">S</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/ JOHN A. HARDY</FONT></TD>
    <TD STYLE="vertical-align: top; padding-left: 9pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Director, Chief Executive Officer (Principal Executive Officer)</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">March 30, 2020</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>John A. Hardy</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="line-height: 115%">&nbsp;</TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="line-height: 115%">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; border-bottom: black 1pt solid; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%">S</FONT><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">/ L&rsquo;SHERYL D. HUDSON</FONT></TD>
    <TD STYLE="vertical-align: top; padding-left: 9pt; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)</FONT></TD>
    <TD STYLE="white-space: nowrap; vertical-align: top; text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; line-height: 115%">March 30, 2020</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: center; line-height: 115%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 7.5pt; line-height: 115%"><B>L&rsquo;Sheryl D. Hudson</B></FONT></TD>
    <TD STYLE="padding-left: 9pt; line-height: 115%">&nbsp;</TD>
    <TD STYLE="white-space: nowrap; line-height: 115%">&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: center; text-indent: 440pt"><A HREF="f10k_equus123119.htm">Exhibit 99.1</A></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: center"><B>Equus Energy, LLC and Subsidiary</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: center">Consolidated Financial Statements</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 4.5pt; text-align: center">As of December 31, 2019 and 2018
and for the three years ended December 31, 2019</P>

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<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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<P STYLE="font: 14pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><B>Equus Energy, LLC and Subsidiary</B></P>

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<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

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    <TD STYLE="width: 94%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Independent Auditor&rsquo;s Report</B></FONT></TD>
    <TD STYLE="width: 2%; padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 4%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">3</FONT></TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Consolidated
    Financial Statements</B></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a020">Consolidated Balance Sheets</A></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">4</FONT></TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a021">Consolidated Statements of Operations</A></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">5</FONT></TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-right: 5.4pt; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a022">Consolidated Statements of Changes in Member&rsquo;s Capital</A></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">6</FONT></TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a023">Consolidated Statements of Cash Flows</A></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">7</FONT></TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
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    <TD STYLE="padding-right: 5.4pt; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><A HREF="#a024">Notes to Consolidated Financial Statements</A></FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">8</FONT></TD></TR>
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<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"><B>&nbsp;</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>Independent Auditor&rsquo;s Report </B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B>&nbsp;</B></P>

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

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

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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We have audited the accompanying consolidated
financial statements of Equus Energy, LLC and its subsidiary, which comprise the consolidated balance sheets as of December 31,
2019 and 2018, and the related consolidated statements of operations, changes in member&rsquo;s capital, and cash flows for the
three years ended December 31, 2019, and the related notes to the consolidated financial statements.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Management&rsquo;s Responsibility for the Financial Statements</I></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management is responsible for the preparation
and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in
the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B><I>Auditor&rsquo;s Responsibility</I></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our responsibility is to express an opinion
on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the consolidated financial statements are free from material misstatement.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend
on the auditor&rsquo;s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity&rsquo;s
preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity&rsquo;s internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the
consolidated financial statements.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our audit opinion.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In our opinion, the consolidated
financial statements referred to above present fairly, in all material respects, the financial position of Equus Energy, LLC
and its subsidiary as of December 31, 2019 and 2018, and the results of their operations and their cash flows for the three
years ended December 31, 2019 in accordance with accounting principles generally accepted in the United States of
America.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="font-size: 10pt"><B><I>Emphasis of a Matter - COVID-19</I></B></FONT></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As more fully described in Note 9 to the consolidated financial statements,
the Company may be materially impacted by the outbreak of a novel coronavirus (&ldquo;COVID-19&rdquo;), which was declared a global
pandemic by the World Health Organization in March 2020 and the failure of OPEC to agree on oil production levels which has led
to a substantial decline in oil prices and an increasingly volatile market.</P>

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



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

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

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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">/s/ BDO USA, LLP</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0">March 30, 2020</P>


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    <!-- Field: /Page -->

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

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

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

<P STYLE="font: 14pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><B>Equus Energy, LLC and Subsidiary</B></P>

<DIV STYLE="padding: 0in 0in 1pt; border-bottom: Black 2.25pt solid">

<P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><B><A NAME="a020"></A>Consolidated Balance Sheets</B></P>

</DIV>



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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>&nbsp;</I></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 COLSPAN="2" STYLE="font-weight: bold; font-style: italic; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">December
    31,</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">2019</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; text-align: center; vertical-align: bottom; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">2018</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-family: Arial, Helvetica, Sans-Serif; text-align: center; vertical-align: bottom"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-family: Arial, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-family: Arial, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-family: Arial, Helvetica, Sans-Serif"><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 COLSPAN="2" STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">Assets</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold"><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="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Current 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></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 56%; text-align: left; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Cash
    and cash equivalents</FONT></TD><TD STYLE="width: 8%; color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="color: #000000; text-align: right; width: 12%">553,111<FONT STYLE="font-family: Times New Roman, Times, Serif"></FONT></TD><TD STYLE="width: 1%; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="width: 8%; color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 12%; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">965,648</FONT></TD><TD STYLE="width: 1%; color: #000000; 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"><FONT STYLE="font-family: Times New Roman, Times, Serif">Accounts receivable</FONT></TD><TD STYLE="color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">65,374</FONT></TD><TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">126,718</FONT></TD><TD STYLE="color: #000000; 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; padding-left: 10pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Prepaid
    expenses and other current assets</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">34,119</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">34,119</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><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="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; 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="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total Current Assets</FONT></TD><TD STYLE="color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">652,384</FONT></TD><TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,126,485</FONT></TD><TD STYLE="color: #000000; 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="font-weight: bold"><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 STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Oil
    and Gas Properties, net, using full cost method</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">241,558</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">236,422</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><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="font-weight: bold"><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 STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total
    Assets</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">894,162</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,362,907</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 2pt solid"><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="font-weight: bold"><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 STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Liabilities and Member's
    Equity</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="font-weight: bold"><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 STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Current Liabilities</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="text-align: left; padding-left: 10pt"><FONT STYLE="font-family: Times New Roman, Times, Serif">Accounts payable
    and other current liabilities</FONT></TD><TD STYLE="color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">82,461</FONT></TD><TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">130,879</FONT></TD><TD STYLE="color: #000000; 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; padding-left: 10pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Due
    to Parent</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">561,047</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">561,047</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><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="font-weight: bold"><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 STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total Current Liabilities</FONT></TD><TD STYLE="color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">643,508</FONT></TD><TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">691,926</FONT></TD><TD STYLE="color: #000000; 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="font-weight: bold"><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 STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Asset
    Retirement Obligations</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">201,059</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">194,522</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><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="font-weight: bold"><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 STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total Liabilities</FONT></TD><TD STYLE="color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">844,567</FONT></TD><TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">886,448</FONT></TD><TD STYLE="color: #000000; 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="font-weight: bold"><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 STYLE="font-weight: bold; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">Commitments and Contingencies
    (See Note 7)</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="font-weight: bold"><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 STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Member's
    Equity</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">49,595</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">476,459</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><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="font-weight: bold"><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 STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total
    Member's Equity</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">49,595</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">476,459</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><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="font-weight: bold"><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 STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total
    Liabilities and Member's Equity</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">894,162</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">1,362,907</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I></I></P>

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>See accompanying notes to the consolidated
financial statements.</I></P>

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

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

<P STYLE="font: 9pt Times New Roman, Times, Serif; margin: 0; text-align: right"></P>


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    <!-- Field: /Page -->

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

<P STYLE="font: 14pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equus
Energy, LLC and Subsidiary</B></FONT></P>

<P STYLE="font: 14pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"></P>





<P STYLE="font: 14pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B></B></FONT></P>

<P STYLE="font: 14pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<DIV STYLE="padding: 0in 0in 1pt; border-bottom: Black 2.25pt solid"><P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><A NAME="a021"></A>Consolidated
Statements of Operations</B></FONT></P></DIV>


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

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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif; border-bottom: Black 2pt solid">
<TR STYLE="vertical-align: bottom; border-bottom: Black 2pt solid">
    <TD STYLE="font-weight: bold; font-style: italic">Year Ended December 31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">2019</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">2018</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">2017</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3" STYLE="text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&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="font-weight: bold; text-align: left">Operating Revenue</TD><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="width: 46%; text-align: left; padding-left: 10pt">Oil revenues</TD><TD STYLE="width: 5%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 11%; color: #000000; text-align: right">339,507</TD><TD STYLE="width: 1%; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 11%; color: #000000; text-align: right">478,041</TD><TD STYLE="width: 1%; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 11%; color: #000000; text-align: right">407,772</TD><TD STYLE="width: 1%; color: #000000; 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">NGL revenues</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">233,743</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">346,777</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">171,047</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; border-bottom: Black 1pt solid">
    <TD STYLE="text-align: left; padding-left: 10pt">Natural gas revenues</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">130,645</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">259,953</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">281,761</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">&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; border-bottom: Black 1pt solid">
    <TD STYLE="font-weight: bold; text-align: left">Total Operating Revenue</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">703,895</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">1,084,771</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">860,580</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">&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="font-weight: bold; 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><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 STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">856,362</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">786,737</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">553,230</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Gain on sale of oil and gas properties</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 STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">(619,293</TD><TD STYLE="color: #000000; 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; padding-left: 10pt">Depletion, depreciation, amortization and accretion</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">23,479</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">343,666</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">295,391</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; border-bottom: Black 1pt solid">
    <TD STYLE="text-align: left; padding-left: 10pt">General and administrative</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">251,138</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">284,448</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">278,193</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">&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; border-bottom: Black 1pt solid">
    <TD STYLE="font-weight: bold; text-align: left">Total Operating Expenses</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">1,130,979</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">795,558</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">1,126,814</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">&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="font-weight: bold; text-align: left">(Loss) Income Before Income Taxes</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">(427,084</TD><TD STYLE="color: #000000; text-align: left">)</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">289,213</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">(266,234</TD><TD STYLE="color: #000000; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">&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; border-bottom: Black 1pt solid">
    <TD STYLE="font-weight: bold; text-align: left">Income Tax (Benefit) Expense, net</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">(220</TD><TD STYLE="color: #000000; text-align: left">)</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">1,185</TD><TD STYLE="color: #000000; 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="font-weight: bold">&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="font-weight: bold; text-align: left">Net (Loss) Income</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">$</TD><TD STYLE="color: #000000; text-align: right">(426,864</TD><TD STYLE="color: #000000; text-align: left">)</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">$</TD><TD STYLE="color: #000000; text-align: right">288,028</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">$</TD><TD STYLE="color: #000000; text-align: right">(266,234</TD><TD STYLE="color: #000000; text-align: left">)</TD></TR>
</TABLE>



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

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

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

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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>See accompanying notes to the consolidated
financial statements.</I></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 9pt Sans-Serif; margin: 0 6.3pt 0 0; text-align: center; color: Red">&nbsp;</P>

<P STYLE="font: 14pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equus
Energy, LLC and Subsidiary</B></FONT></P>

<P STYLE="font: 8pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center; border-bottom: Black 2.25pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B><A NAME="a022"></A>Consolidated
Statements of Changes in Member&rsquo;s Capital</B></FONT></P>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I></I></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"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Total</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif">Member's</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Equity</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><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 COLSPAN="3" STYLE="text-align: right"><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: 70%; font-weight: bold"><FONT STYLE="font-family: Times New Roman, Times, Serif">Balance,
    January 1, 2017</FONT></TD><TD STYLE="width: 10%; color: #000000"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="width: 18%; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">454,665</FONT></TD><TD STYLE="width: 1%; color: #000000; 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;</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="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net
    loss</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">(266,234</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><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="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Balance,
    December 31, 2017</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: left"></TD><TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">188,431</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; 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; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net
    </FONT>income</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">288,028</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"></TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD><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="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Balance,
    December 31, 2018</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: left"></TD><TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">476,459</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 2pt solid"><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;</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="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Net
    </FONT>loss</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="color: #000000; text-align: left; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD><TD STYLE="color: #000000; text-align: right; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">(426,864</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="color: #000000; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">Balance,
    December 31, 2019</FONT></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">$</FONT></TD><TD STYLE="border-bottom: Black 2pt solid; color: #000000; text-align: right"><FONT STYLE="font-family: Times New Roman, Times, Serif">49,155</FONT></TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 2pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif">&nbsp;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I></I></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>See accompanying notes to the consolidated
financial statements.</I></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>


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    <!-- Field: /Page -->

<P STYLE="font: 14pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equus
Energy, LLC and Subsidiary</B></FONT></P>

<P STYLE="font: 14pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center; border-bottom: Black 2.25pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif"><A NAME="a023"></A><B>Consolidated
Statements of Cash Flows</B></FONT></P>


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

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

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom; border-bottom: Black 2pt solid">
    <TD STYLE="font-weight: bold; font-style: italic">Year Ended December 31,</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">2019</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">2018</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center">2017</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold">&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">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><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: 46%; text-align: left">Net income (loss)</TD><TD STYLE="width: 5%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 11%; color: #000000; text-align: right">(426,864</TD><TD STYLE="width: 1%; color: #000000; text-align: left">)</TD><TD STYLE="width: 5%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 11%; color: #000000; text-align: right">288,028</TD><TD STYLE="width: 1%; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="width: 5%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 11%; color: #000000; text-align: right">(266,234</TD><TD STYLE="width: 1%; color: #000000; 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 income (loss) to net</TD><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;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>&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">Depletion, depreciation and amortization</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">16,942</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">337,710</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">289,340</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">Gain on sale of oil and gas properties</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">(619,293</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; padding-left: 10pt">Accretion expense</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,537</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">5,956</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">6,051</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; padding-left: 10pt">Accounts receivable</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">61,344</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,935</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,809</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-left: 10pt">Prepaid expenses and other current assets</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">(1,459</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(843</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">Accounts payable and accrued liabilities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(48,418</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">24,540</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">31,844</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White; border-bottom: Black 1pt solid">
    <TD STYLE="text-align: left; padding-left: 10pt">Due to Parent</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">(24,999</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(25,000</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Arial, Helvetica, Sans-Serif">&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="font-weight: bold; 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">(390,459</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(15,452</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">25,349</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">&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="font-weight: bold; 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><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">Sales of oil and gas properties</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">846,975</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; border-bottom: Black 1pt solid">
    <TD STYLE="text-align: left; padding-left: 10pt">Investment in oil and gas properties</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22,078</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(172,884</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,625</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">&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="font-weight: bold; text-align: left">Net Cash (Used in) Provided by Investing Activities</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(22,078</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">674,091</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(9,625</TD><TD STYLE="text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold">&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="font-weight: bold; text-align: left">Net (Decrease) Increase in Cash and</TD><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; text-align: left; padding-left: 10pt">Cash Equivalents</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(412,537</TD><TD STYLE="text-align: left">)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">658,639</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">15,724</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">&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); border-bottom: Black 1pt solid">
    <TD STYLE="font-weight: bold; text-align: left">Cash and Cash Equivalents, beginning of year</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">965,648</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">307,009</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">291,285</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">&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); border-bottom: Black 2pt solid">
    <TD STYLE="font-weight: bold; text-align: left">Cash and Cash Equivalents, end of year</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">$</TD><TD STYLE="color: #000000; text-align: right">553,111</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">$</TD><TD STYLE="color: #000000; text-align: right">965,648</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">$</TD><TD STYLE="color: #000000; text-align: right">307,009</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD></TR>
</TABLE>



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

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

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><I>See accompanying notes to the consolidated
financial statements.</I></P>

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

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

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

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

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

<P STYLE="font: 14pt/150% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equus
Energy, LLC and Subsidiary</B></FONT></P>

<P STYLE="font: 12pt/115% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><A NAME="a024"></A><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<DIV STYLE="padding: 0in 0in 1pt; border-bottom: Black 2.25pt solid"><P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>December
31, 2019, 2018 and 2017</B></FONT></P></DIV>


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

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

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

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



<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nature of Operations</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Equus Energy, LLC (&ldquo;Equus Energy&rdquo;)
was formed in November 2011 as a wholly-owned subsidiary of the Equus Total Return, Inc. (the &ldquo;Fund&rdquo;) to make investments
in properties in the energy sector, with a particular emphasis on income-producing oil &amp; gas properties. In December 2011,
the Fund made an initial contribution of $250,000 to Equus Energy. On December 27, 2012, the Fund invested an additional $6,800,000
in Equus Energy for the purpose of additional working capital and to fund the purchase of various working interests, presently
consisting of 144 producing and non-producing oil and gas wells. The interests were acquired by EQS Energy Holdings, Inc., a taxable
wholly-owned subsidiary of Equus Energy (Equus Energy and EQS Energy Holdings, Inc. are collectively referred to herein as the
&ldquo;Company&rdquo;).</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Currently owned working interests include
associated development rights of approximately 21,520 acres situated on 11 separate properties in Texas and Oklahoma. The working
interests range from a de minimus amount to 50% of the leasehold that includes these wells.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-indent: 27.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The wells are operated by a number of
experienced operators, including Chevron USA, Inc., which has operating responsibility for all of the Company&rsquo;s 40
producing well interests located in the Conger Field, an oil and gas field on the edge of the Permian Basin, a 50% working
interest in each of the leases on which the wells are located, and 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: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 30, 2020, the World Health Organization (&ldquo;WHO&rdquo;)
announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the &ldquo;COVID-19 outbreak&rdquo;)
and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified
the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The full impact of the COVID-19 outbreak continues to evolve as
of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on the Company&rsquo;s
financial condition, liquidity, and future results of operations. Management is actively monitoring the global situation on its
financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak
and the global responses to curb its spread, the Company is not able to estimate the effects of the COVID-19 outbreak on its results
of operations, financial condition, or liquidity for fiscal year 2020.</P>



<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>



<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summary of Significant
Accounting Policies</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Basis of Presentation and Consolidation</I></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying consolidated financial statements
are prepared on the accrual basis of accounting as codified in the Financial Standards Accounting Board&rsquo;s (&ldquo;FASB&rdquo;)
Accounting Standards Codification (&ldquo;ASC&rdquo;) and include the accounts of the Company. All significant intercompany balances
and transactions have been eliminated.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Use of Estimates</I></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of consolidated financial
statements in conformity with accounting principles generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. Management believes that these estimates and assumptions provide a reasonable
basis for the fair presentation of the consolidated financial statements.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Significant estimates include volumes of
oil and natural gas reserves used in calculating depreciation and depletion of oil and gas properties, future net revenues,
abandonment obligations, impairment of undeveloped properties, the collectability of outstanding accounts receivable,
contingencies, and the results of current and future litigation. Oil and natural gas reserve estimates, which are the basis
for unit-of-production depreciation and depletion, and impairment have numerous inherent uncertainties. The accuracy of
any reserve estimate is a function of the quality of available data and of engineering and geological interpretation
and judgment. Subsequent drilling results, testing, and production may justify revision of such estimates. Accordingly,
reserve estimates are often different from the quantities of oil and natural gas that are ultimately recovered. In addition,
reserve estimates are sensitive to changes in wellhead prices of crude oil and natural gas. Such prices have been volatile in
the past and can be expected to be volatile in the future.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The significant estimates are based on current
assumptions that may be materially affected by changes to future economic conditions such as the market prices received for sales
of volumes of oil and natural gas. Future changes in these assumptions may affect these significant estimates materially in the
near term.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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

<P STYLE="font: 14pt/150% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equus
Energy, LLC and Subsidiary</B></FONT></P>

<P STYLE="font: 12pt/115% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<DIV STYLE="padding: 0in 0in 1pt; border-bottom: Black 2.25pt solid"><P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>December
31, 2019, 2018 and 2017</B></FONT></P></DIV>


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Cash and Cash Equivalents</I></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers cash and cash equivalents
to include all cash, time deposits, certificates of deposit, and all highly liquid instruments with original maturities of three
months or less.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable primarily consists of
accrued revenues from oil and gas sales. The Company routinely assesses the recoverability of all material receivables to determine
their collectability. The Company recognizes a reserve on a receivable when, based on the judgment of management, it is likely
that a receivable will not be collected and the amount of any reserve may be reasonably estimated. No allowance for doubtful accounts
was considered necessary as of December 31, 2019 and 2018.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Oil and Gas Properties</I></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company follows the full cost method
of accounting for oil and gas properties. Under this method of accounting, all costs incurred for both successful
and unsuccessful exploration and development activities, including salaries, benefits and other internal costs
directly identified with these activities, and oil and gas property acquisitions are capitalized. All costs related to
production, general corporate overhead or similar activities are expensed as incurred. Proved properties are amortized using
the units of production method (&ldquo;UOP&rdquo;). The UOP calculation, in its simplest terms, multiplies the percentage of
estimated proved reserves produced by the cost of those reserves. The amortization base in the UOP calculation includes the
sum of proved property, net of accumulated depreciation, depletion and amortization (&ldquo;DD&amp;A&rdquo;), estimated
future development costs (future costs to access and develop reserves) and asset retirement costs that are not already
included in oil and gas property, less related salvage value. In arriving at rates under the UOP method, the quantities of
recoverable oil and natural gas reserves are established based on estimates made by the  third-party geologists and engineers
using end-of-period costs and an unweighted arithmetic average of commodity prices in effect on the first day of each of the
previous twelve months, held flat for the life of the production, except where prices are defined by
contractual arrangements. Prices are adjusted for &ldquo;basis&rdquo; or location differentials which require significant
judgment, as does the projection of future production volumes and levels of future costs, including future development costs.
In addition, considerable judgment is necessary in determining when unproved properties become impaired and in determining
the existence of proved reserves once a well has been drilled. All of these judgments may have significant impact on
the calculation of depletion expense.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the full-cost method of accounting,
the net book value of oil and gas properties may not exceed a calculated &ldquo;ceiling.&rdquo; The ceiling limitation is the estimated
future net cash flows from proved oil and gas reserves, discounted at ten percent per annum. Estimated future cash flows exclude
future cash outflows associated with settling accrued asset retirement obligations. The estimated future net cash flows are calculated
using end-of-period costs and an unweighted arithmetic average of commodity prices in effect on the first day of each of the previous
twelve months, held flat for the life of the production, except where prices are defined by contractual arrangements. Prices are
adjusted for &ldquo;basis&rdquo; or location differentials. Any excess of the net book value of proved oil and gas properties over
the ceiling is charged to expense and reflected as additional impairment in the accompanying statements of operations. Equus Energy
did not record any impairment during the year ended December 31, 2019, 2018 and 2017. Based on calculated reserves at December
31, 2019, the unamortized costs of the Company&rsquo;s oil and natural gas properties exceeded the ceiling test limit.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Proceeds from the sales or disposition of
oil and gas of proved and unproved properties are accounted for as a reduction of capitalized costs with no gain or loss recognized,
unless such reduction would significantly alter the relationship between capitalized costs and proved reserves, in which case the
gain or loss is recognized in the statement of operations. In general, a significant alteration occurs when the deferral of gains
or losses will result in an amortization rate materially different from the amortization rate calculated upon recognition of gains
or losses. Abandonments of properties are accounted for as adjustments of capitalized costs with no loss recognized.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended December 31, 2019 and
2017, the Company had no sales of properties. During the year ended December 31, 2018, the Company has two sales of certain properties
within the Permian Basin.&nbsp; The Company evaluated both sales and demonstrated that the first sale did not constitute a material
difference in amortization rates; therefore, the proceeds were taken against the full cost pool and reduced the basis by $200,000.&nbsp;
The Company evaluated the second sale and&nbsp;determined a material difference in amortization rates would occur if no gain was
recognized on the sale and therefore recorded a gain of $619,293 on the sale. The corresponding reduction in the carrying amount
of its oil and gas full cost pool related to the second sale was $15,707.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I></I></B></P>

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<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I></I></B></P>

<P STYLE="font: 14pt/150% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equus
Energy, LLC and Subsidiary</B></FONT></P>

<P STYLE="font: 12pt/115% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<DIV STYLE="padding: 0in 0in 1pt; border-bottom: Black 2.25pt solid"><P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>December
31, 2019, 2018 and 2017</B></FONT></P></DIV>


<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I></I></B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Accounting Standards Recently
Adopted </I></B></P>

<P STYLE="font: 10.5pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In May 2014, the FASB issued ASU 2014-09,
Revenue from Contracts with Customers (Topic 606). ASU 2014-09 supersedes the revenue recognition requirements under ASC 605, Revenue
Recognition, and most industry-specific guidance throughout the Industry Topics of the ASC. The core principle of the guidance
is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that
reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Under the new guidance,
an entity is required to perform the following five steps: (1) identify the contract(s) with a customer; (2) identify the performance
obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations
in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The new guidance will significantly
enhance comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. Additionally,
the guidance requires improved disclosures as to the nature, amount, timing and uncertainty of revenue that is recognized.</P>

<P STYLE="font: 10.5pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Revenue Recognition</I></B></P>

<P STYLE="font: 10.5pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company recognizes revenue at the point
in time when control of the promised goods is transferred to customers at an amount that reflects the consideration to which the
entity expects to be entitled in exchange for those goods or services. The Company adopted ASU No. 2014-09, Accounting Standards
Codification (&quot;ASC&quot;) 606, &quot;Revenue from Contracts with Customers&quot; (&quot;ASC 606&quot;), which supersedes the
revenue recognition requirements in ASC 605, &quot;Revenue Recognition&quot; (&quot;ASC 605&quot;), on January 1, 2019 using the
modified retrospective transition method. The Company did not record a change to its opening retained earnings as of January 1,
2019 as there was no material change to the timing or pattern of revenue recognition due to the adoption of ASC 606.</P>

<P STYLE="font: 10.5pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&rsquo;s revenue is generated
primarily from the sale of oil, gas and natural gas liquids (&ldquo;NGL&rdquo;) produced from working interests and to a lesser
extent from royalty interests in oil and gas properties owned by the Company. As a working interest owner, the Company is responsible
for the incurred production expenses proportionate to the interest stipulated in the operating agreement. As a non-operator, the
Company does not manage the daily well operations, which are borne by the well operator. Sales of oil, gas and NGLs are recognized
at the time control of the product is transferred to the customer.</P>

<P STYLE="font: 10.5pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Various arrangements amongst the eleven different
oil and gas properties all differ in some respects, although they do share the commonality that, as a non-operating working interest
holder, the Company does not engage in the selling process, but instead relies on the operator, as their selling agent, for negotiating
and determining pricing, volume, and delivery terms. Such pricing terms are often a function of a specified discount from the daily/monthly
NYMEX or Henry Hub average. The discount is usually based on differentials such as distance of the field/wells from the distribution
node or the buyer&rsquo;s storage facility, as well as the quality of the product itself (i.e., in the case of oil, its gravity).</P>

<P STYLE="font: 10.5pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Revenue is measured based on consideration
specified in the contract with the customer, and excludes any amounts collected on behalf of third parties. The Company recognizes
revenue in the amount that reflects the consideration it expects to be entitled to in exchange for transferring control of those
goods to the customer. The contract consideration is typically allocated to specific performance obligations in the contract according
to the terms of the contract. Each unit of oil or gas is considered a separate performance obligation under the contract. Wells
are spot measured once a month to determine production and the composition of each of the products (i.e. oil, gas, NGLs) from the
well. Each month the consideration obtained by the operator is allocated to the related performance obligations.</P>

<P STYLE="font: 10.5pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.4in"><I>Performance Obligations</I></P>

<P STYLE="font: 10.5pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A performance obligation is a promise in
a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC 606. A contract&rsquo;s transaction
price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is
satisfied. Revenue is recognized when performance obligations are satisfied in accordance with contractual terms, in an amount
that reflects the consideration the Company expects to be entitled to in exchange for services rendered.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Depending on the contract and commodity,
there are various means by which upstream entities can transfer control (i.e., at the wellhead, inlet, tailgate of the processing
plant, or a location where the product is delivered to a third party). The Operator has control of the commodity before it is extracted,
therefore consideration must be given to whether the transfer of control of the commodity is to the operator or to the end customer
at the point of sale.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Unless special arrangements are entered into,
the Company&rsquo;s performance obligations are generally considered performed when control of the extracted commodity transfers
when it is delivered to the end customer at the agreed-upon market or index price. At the end of each month, when the performance
obligation is satisfied, the variable consideration can be reasonably estimated. Variances between the Company&rsquo;s estimated
revenue and actual payments are recorded in the month the payment is received.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 14pt/150% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equus
Energy, LLC and Subsidiary</B></FONT></P>

<P STYLE="font: 12pt/115% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<DIV STYLE="padding: 0in 0in 1pt; border-bottom: Black 2.25pt solid"><P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>December
31, 2019, 2018 and 2017</B></FONT></P></DIV>


<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.4in"><I>Contract Balances</I></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Receivables from contracts with customers
are recorded when the right to consideration becomes unconditional, generally when control of the product has been transferred
to the customer. Under the terms of the Company&rsquo;s contract with the operator, the operator processes invoices to the liable
parties and payments to the interest owners. Other than trade receivables, the Company&rsquo;s contracts do not give rise to contract
assets or liabilities under ASC 606.</P>



<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.4in"><I>Principal vs.
Agent</I></P>

<P STYLE="font: 10.5pt/115% Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">While the guidance on principal versus agent
considerations is similar to legacy GAAP, the key difference is that ASC 606 focuses on control of the specified goods and services
as the overarching principle for entities to consider when determining whether they are acting as a principal or an agent. This
could result in entities reaching different conclusions than they did under legacy GAAP.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">An entity acting as a principal records revenue
on a gross basis if it controls a promised good or service before transferring that good or service to the customer. An entity
is an agent if it does not control the promised good or service before transfer to the customer. If the entity is an agent, it
records as revenue the net amount it retains for its agency services. However, due to the uncertainty of the variable pricing component
and the separation of expenses billed to the Company from the consideration processed and paid by the operator, the revenue is
recorded at net.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the Company&rsquo;s normal operating
activity arrangements, the operator is responsible for negotiating, fulfilling and collecting the agreed-upon amount from the sale
with the end customer and is, therefore, determined to be acting as agent on behalf of the Company. The principal versus agent
consideration will continue to be assessed for new contracts, both within and outside the company&rsquo;s normal operating activities.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Major Customers and Concentration of
Credit Risk</I></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the exploration, development and production
business, production is normally sold to relatively few customers. Substantially all of the Company&rsquo;s customers are concentrated
in the oil and natural gas industry and revenue can be materially affected by current economic conditions, the price of certain
commodities such as crude oil and natural gas and the availability of alternate purchasers. The Company believes the loss of any
of its major purchasers would not have a long-term material adverse effect on its operations.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Environmental Expenditures</I></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is subject to extensive federal,
state and local environmental laws and regulations. These laws regulate the discharge of materials into the environment and may
require the Company to remove or mitigate the environmental effects of the disposal or release of petroleum or chemical substances
at various sites. Environmental expenditures are expensed or capitalized depending on their future economic benefit. Expenditures
that relate to an existing condition caused by past operations and that have no future economic benefits are expensed.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Liabilities for expenditures of a non-capital
nature are recorded when environmental assessment and/or remediation is probable, and the costs can be reasonably estimated. Such
liabilities are generally undiscounted unless the timing of cash payments for the liability or component is fixed or reliably determinable.
No such liabilities existed or were recorded at December 31, 2019 and 2018.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Asset Retirement Obligations</I></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>&nbsp;</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The initial estimated asset retirement obligation
related to property and equipment is recorded as a liability at its fair value, with an offsetting asset retirement cost recorded
as an increase to the associated property and equipment on the consolidated balance sheet. If any of the assumptions used in determining
the fair value of the recorded asset retirement obligation change, a revision is recorded to both the asset retirement obligation
and the asset retirement cost. Revisions in estimated liabilities can result from changes in estimated inflation rates, changes
in service and equipment costs and changes in the estimated timing of an asset&rsquo;s retirement. Asset retirement costs are depreciated
using a systematic and rational method similar to that used for the associated property and equipment. Accretion on the liability
is recognized over the estimated productive life of the related assets. Accretion expense for the years ended December 31, 2019,
2018 and 2017 was $6,537, $5,956 and $6,051, respectively.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Income Taxes</I></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These financial statements are presented
on a consolidated basis. For state tax purposes, EQS Energy Holdings files a combined Texas franchise filing with its direct parent
Equus Energy, LLC along with its ultimate parent Equus Total Return, Inc. However, Equus Energy, LLC is disregarded as an entity
separate from its owner for U.S. federal income tax purposes, and its activity is reported by Equus Total Return, Inc.</P>


<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>



<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 14pt/150% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equus
Energy, LLC and Subsidiary</B></FONT></P>

<P STYLE="font: 12pt/115% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<DIV STYLE="padding: 0in 0in 1pt; border-bottom: Black 2.25pt solid"><P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>December
31, 2019, 2018 and 2017</B></FONT></P></DIV>


<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">EQS Energy Holdings, conversely, is a taxable
C-corporation that is not included in either the tax returns for Equus Energy, LLC or Equus Total Return, Inc. under U.S. federal
income tax principles, and accordingly files a separate corporate income tax return.</P>


<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for income taxes under
the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax
consequences of the events that have been included in the consolidated financial statements. </P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> Under this method, deferred tax assets
and liabilities are determined based on the differences between the financial statements and tax bases of assets and liabilities
using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax
rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records deferred tax assets to
the extent the Company believes these assets will more-likely-than-not be realized. In making such determinations, the Company
considers all available positive and negative evidence, including future reversals of existing temporary differences, projected
future taxable income, tax planning strategies and recent financial operations. In the event the Company were to determine that
it would be able to realize deferred income tax assets in the future in excess of their net recorded amount, an adjustment to the
valuation allowance would be made which would reduce the provision for income taxes.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC Topic 740-10, &ldquo;<I>Income Taxes&rdquo;</I>
provides that a tax benefit from an uncertain position may be recognized in the financial statements when it is more-likely-than-not
that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based
on technical merits. This guidance also addresses measurement, derecognition, classification, interest and penalties, accounting
for interim periods, disclosure and transition. The Company has no material uncertain tax positions in its prior or current filings.</P>


<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oil and Gas Properties</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Oil and gas properties as of December 31,
2019 and 2018 consist of the following:</P>



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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 2pt solid">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid">2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid">2018</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: left">Oil and gas properties being depleted</TD><TD STYLE="width: 8%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 12%; color: #000000; text-align: right">8,030,506</TD><TD STYLE="width: 1%; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 12%; color: #000000; text-align: right">8,008,428</TD><TD STYLE="width: 1%; color: #000000; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt; border-bottom: Black 1pt solid">Less: accumulated depreciation, depletion and impairment</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">7,788,948</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">7,772,006</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 1pt solid">Oil and gas properties, net</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">241,558</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">236,422</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD></TR></TABLE>
<P STYLE="font: 9pt Sans-Serif; margin: 0; color: Red"><B></B></P>

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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset Retirement
Obligations</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of a liability for ARO is
recorded in the period in which it is 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. The liability is accreted to its then present value
each period, and the capitalized cost is depreciated over the useful life of the related asset. If the liability is settled for
an amount other than the recorded amount, an adjustment is made to the full cost pool, with no gain or loss recognized, unless
the adjustment would significantly alter the relationship between capitalized costs and proved reserves. The Company has estimated
its future ARO with respect to its operations. The ARO assets, which are carried on the balance sheet as part of the full cost
pool, have been included in the Company&rsquo;s amortization base for the purposes of calculating depreciation, depletion and amortization
expense.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company estimates the initial fair value
of its ARO based on discounted cash flow projections using numerous estimates, assumptions and judgments regarding such factors
as the existence of a legal obligation for an ARO, amounts and timing of settlements; the credit-adjusted risk-free rate to
be used; and inflation rates. The Company&rsquo;s initial recording of AROs are Level 3 fair value measurements.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following summarizes the changes in the
asset retirement obligation during the years ended December 31, 2019 and 2018:</P>



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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

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

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="border-bottom: Black 2pt solid">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid">2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid">2018</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-size: 8pt; text-align: right">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 56%; text-align: left">Balance, beginning of year</TD><TD STYLE="width: 8%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 12%; color: #000000; text-align: right">194,522</TD><TD STYLE="width: 1%; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 12%; color: #000000; text-align: right">189,756</TD><TD STYLE="width: 1%; color: #000000; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left; padding-bottom: 1pt; padding-left: 10pt; border-bottom: Black 1pt solid">Accretion, net of settlements</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">6,537</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">4,766</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 8pt">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt">&nbsp;</TD>
    <TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 8pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Balance, end of year</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">201,059</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">194,522</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Sans-Serif; margin: 0; color: Red"><B></B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0"><B></B></P>

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

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



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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 14pt/150% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equus
Energy, LLC and Subsidiary</B></FONT></P>

<P STYLE="font: 12pt/115% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<DIV STYLE="padding: 0in 0in 1pt; border-bottom: Black 2.25pt solid"><P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>December
31, 2019, 2018 and 2017</B></FONT></P></DIV>


<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair Value Measurements</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Equus Energy uses various inputs in determining
the fair value of certain assets and liabilities. FASB ASC 820, <I>Fair Value Measurements and Disclosures &ldquo;ASC 820&rdquo;,</I>
establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The asset or liability&rsquo;s
fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the
fair value measurement. The three levels of the fair value hierarchy under ASC 820, including the types of Company assets or liabilities
that fall under each category and the valuation methodologies used to measure fair value, are described below:</P>


<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.7in; text-align: justify; text-indent: -0.7in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.7in; text-align: justify; text-indent: -0.7in"><I>Level 1</I>
-&#9;Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.7in; text-align: justify; text-indent: -0.7in"><I>Level 2
-&#9;</I>Inputs to the methodology are other than quoted market prices in active markets that are observable, either directly or
indirectly, such as quoted prices for similar assets or liabilities; quoted prices that are in inactive markets; inputs other than
quoted prices that are observable for the assets or liability; and inputs that are derived principally from or corroborated by
observable market data by correlation or other means.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0 0 0 0.7in; text-align: justify; text-indent: -0.7in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.7in; text-align: justify; text-indent: -0.7in"><I>Level 3</I>
-&#9;Inputs to the valuation methodology are unobservable inputs (i.e. projections, estimates, interpretations, etc.) that are
supported by little or no market activity and that are significant to the fair value of the assets or liabilities.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0 0.25in 0 63pt; text-align: justify; text-indent: -63pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The inputs and methodology used for valuing
the Company&rsquo;s assets and liabilities are not indicators of the risks associated with those assets and liabilities.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following is a description of the valuation
methodology used for assets and liabilities measured at fair value:</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><I>Asset retirement
obligation (&ldquo;ARO&rdquo;) at initial recognition: </I>the Company&rsquo;s ARO is based on the present value of future estimated
cash flows, using a credit-adjusted risk free discount rate and has been categorized under ASC 820 as a Level 3 fair value assessment.</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 0.7in; text-align: justify; text-indent: -0.7in"></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"><FONT STYLE="text-underline-style: double">&nbsp;</FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Concentrations of
Credit Risk</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Financial instruments, which potentially
subject the Company to concentrations of credit risk, consist principally of cash and receivables. The Company maintains its cash
with a financial institution it believes has high credit quality. The Company at times maintains bank deposits in excess of insured
limits. The possibility of a loss exists if the bank holding excess deposits were to fail. Trade receivables result from oil and
gas sales to a small number of purchasers. To mitigate this credit risk, the Company closely monitors the payment history and credit
worthiness of each customer.</P>



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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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

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

<P STYLE="font: 14pt/150% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equus
Energy, LLC and Subsidiary</B></FONT></P>

<P STYLE="font: 12pt/115% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<DIV STYLE="padding: 0in 0in 1pt; border-bottom: Black 2.25pt solid"><P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>December
31, 2019, 2018 and 2017</B></FONT></P></DIV>


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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal Matters and
Contingencies </B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Litigation and Other Legal Matters</I></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the normal course of business, the Company
may be party to various pending or threatened claims, lawsuits and administrative proceedings seeking damages or other remedies
concerning its commercial operations, employees and other matters. Although the outcome of any pending legal proceedings is unknown,
the Company believes that any liability resulting from the outcome of such proceedings, to the extent not otherwise provided for
or covered by insurance, will not have a material adverse effect on the Company&rsquo;s consolidated financial positions, results
of operations or liquidity.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Certain conditions may exist as of the date
the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more
future events occur or fail to occur. The Company&rsquo;s management and its legal counsel assess such contingent liabilities,
and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that
are pending against the Company or unasserted claims that may result in such proceedings, the Company&rsquo;s legal counsel evaluates
the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought
or expected to be sought therein.</P>



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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If the assessment of a loss contingency indicates
that it is probable that a loss has been incurred and the amount of the liability can be reasonably estimated, then the estimated
liability is accrued in the Company&rsquo;s financial statements. If the assessment indicates that a potentially material loss
contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent
liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies
considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be
disclosed. The Company expenses legal costs associated with contingencies as incurred. (<I>See Footnote 7- Legal Matters and Contingencies</I>)</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><B><I>Environmental Contingencies</I></B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company&rsquo;s activities are subject
to local, state and federal laws and regulations governing environmental quality and pollution control in the United States. The
exploration, drilling and production from wells, natural gas facilities, including the operation and construction of pipelines,
plants and other facilities for transporting, processing, treating or storing natural gas and other products, are subject to stringent
environmental regulation by state and federal authorities, including the Environmental Protection Agency (&ldquo;EPA&rdquo;). Such
regulation can increase our cost of planning, designing, installing and operating such facilities.</P>


<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Significant fines and penalties may be imposed
for the failure to comply with environmental laws and regulations. Some environmental laws provide for joint and several strict
liabilities for remediation of releases of hazardous substances, rendering a person liable for environmental damage without regard
to negligence or fault on the part of such person. In addition, we may be subject to claims alleging personal injury or property
damage as a result of alleged exposure to hazardous substances, such as oil and natural gas related products.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At the present time, the Company believes
that none of the environmental laws materially hinder nor adversely affect the Company business. The Company believes it has abided
by and is currently in compliance with all applicable environmental laws.</P>


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

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

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



<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>



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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>

<P STYLE="font: 14pt/150% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equus
Energy, LLC and Subsidiary</B></FONT></P>

<P STYLE="font: 12pt/115% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<DIV STYLE="padding: 0in 0in 1pt; border-bottom: Black 2.25pt solid"><P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>December
31, 2019, 2018 and 2017</B></FONT></P></DIV>


<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></P>



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

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0"><B>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes</B></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The provision for income taxes for the years
ended December 31, 2019, 2018 and 2017 consisted of the following:</P>



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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt"></FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: justify; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: justify; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><B></B></FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: justify; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><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-weight: bold; font-style: italic; border-bottom: Black 2pt solid">Years Ended December 31,</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid">2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid">2018</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid">2017</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold">&nbsp;</TD><TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; font-style: italic; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; font-style: italic; text-align: center">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Current (expense) benefit:</TD><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="width: 46%; font-weight: normal; font-style: normal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal</TD><TD STYLE="width: 5%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 11%; color: #000000; text-align: right">63,854</TD><TD STYLE="width: 1%; color: #000000; text-align: left"></TD><TD STYLE="width: 5%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 11%; color: #000000; text-align: right">(92,972</TD><TD STYLE="width: 1%; color: #000000; text-align: left">)</TD><TD STYLE="width: 5%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 11%; color: #000000; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="width: 1%; color: #000000; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: normal; font-style: normal; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">(1,414</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">)</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">27,651</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&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; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">&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; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Total current (expense) benefit</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">62,440</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"></TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(65,321</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid">)</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&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; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">&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">Deferred (expense) benefit:</TD><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;&nbsp;&nbsp;Federal</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">(63,510</TD><TD STYLE="color: #000000; text-align: left">)</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">86,916</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="border-bottom: Black 1pt solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State</TD><TD STYLE="color: #000000; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="color: #000000; text-align: right; border-bottom: Black 1pt solid">1,290</TD><TD STYLE="color: #000000; text-align: left; border-bottom: Black 1pt solid"></TD><TD STYLE="border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="text-align: right; border-bottom: Black 1pt solid">(22,780</TD><TD STYLE="text-align: left; border-bottom: Black 1pt solid">)</TD><TD STYLE="border-bottom: Black 1pt solid">&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; border-bottom: Black 1pt solid">&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 STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Total deferred (expense) benefit</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">(62,220</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">)</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">64,136</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">&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">Total benefit (expense):</TD><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="font-weight: normal; font-style: normal">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">344</TD><TD STYLE="color: #000000; text-align: left"></TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">(6,056</TD><TD STYLE="color: #000000; 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="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">(124</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">)</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">4,871</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&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; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">&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; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Total benefit (expense)</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">220</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">(1,185</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">)</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: justify; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><B></B></FONT></P>




<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: justify; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><B></B></FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: justify; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: justify; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><B></B></FONT></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The components of the net deferred tax assets
(liabilities) in the Company&rsquo;s balance sheets were as follows:</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><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 COLSPAN="2" STYLE="font-weight: bold; font-style: italic; border-bottom: Black 2pt solid">As of December 31,</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt solid; font-weight: bold; text-align: center">2019</TD>
    <TD STYLE="border-bottom: Black 2pt solid; font-weight: bold; text-align: center">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2pt solid; font-weight: bold; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid">2018</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD><TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; font-style: italic; text-align: center">&nbsp;</TD><TD STYLE="font-weight: bold; font-style: italic">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; font-style: italic; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left">Deferred tax assets:</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 56%; padding-left: 10pt">Properties</TD><TD STYLE="width: 8%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 12%; color: #000000; text-align: right">761,652</TD><TD STYLE="width: 1%; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="width: 8%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 12%; color: #000000; text-align: right">807,396</TD><TD STYLE="width: 1%; color: #000000; 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">Asset retirement obligation</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">42,222</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">40,849</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">State taxes</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">27,202</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">28,836</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">Net operating loss carryforwards</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">355,240</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">247,359</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Deferred tax 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-bottom: 1pt; padding-left: 10pt; border-bottom: Black 1pt solid">State tax deduction</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(5,712</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid">)</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(6,056</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left">Total net deferred tax assets (liabilities)</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,180,604</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">1,181,384</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Valuation allowance</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,180,604</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid">)</TD><TD STYLE="padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; text-align: right">(1,118,384</TD><TD STYLE="padding-bottom: 1pt; text-align: left; border-bottom: Black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">&nbsp;</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-weight: bold; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">Net deferred tax liabilities</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>

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

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
<P STYLE="font: 9pt Sans-Serif; margin: 0; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><B></B></FONT></P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"></P>

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

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

<P STYLE="font: 14pt/150% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Equus
Energy, LLC and Subsidiary</B></FONT></P>

<P STYLE="font: 12pt/115% Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Notes
to Consolidated Financial Statements</B></FONT></P>

<DIV STYLE="padding: 0in 0in 1pt; border-bottom: Black 2.25pt solid"><P STYLE="font: 12pt Trebuchet MS, Times, Serif; margin: 0; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>December
31, 2019, 2018 and 2017</B></FONT></P></DIV>


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

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The provision for income taxes varies from
the maximum federal statutory rate of 21%, 21% and 35% for the years ended December 31, 2019, 2018, and 2017, respectively as follows:</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><FONT STYLE="letter-spacing: -0.1pt">&nbsp;</FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: justify; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><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-weight: bold; font-style: italic; border-bottom: Black 2pt solid">Years Ended December 31,</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid">2019</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid">2018</TD><TD STYLE="font-weight: bold; padding-bottom: 1pt; border-bottom: Black 2pt solid">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="font-weight: bold; text-align: center; border-bottom: Black 2pt solid">2017</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD><TD>&nbsp;</TD>
    <TD COLSPAN="3">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; text-align: left">Income tax expense (benefit) at federal statutory rate</TD><TD STYLE="width: 5%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 11%; color: #000000; text-align: right">(89,688</TD><TD STYLE="width: 1%; color: #000000; text-align: left">)</TD><TD STYLE="width: 5%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 11%; color: #000000; text-align: right">60,485</TD><TD STYLE="width: 1%; color: #000000; text-align: left"></TD><TD STYLE="width: 5%; color: #000000">&nbsp;</TD>
    <TD STYLE="width: 1%; color: #000000; text-align: left">$</TD><TD STYLE="width: 11%; color: #000000; text-align: right">(93,182</TD><TD STYLE="width: 1%; color: #000000; text-align: left">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Effect of state income taxes</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">1,070</TD><TD STYLE="color: #000000; text-align: left"></TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">(21,595</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">Effect of tax reform</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 STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">&mdash;&nbsp;</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD>&nbsp;</TD>
    <TD STYLE="text-align: left">&nbsp;</TD><TD STYLE="text-align: right">788,347</TD><TD STYLE="text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="text-align: left">Other non-deductible expenses</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">26,178</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">26,431</TD><TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000">&nbsp;</TD>
    <TD STYLE="color: #000000; text-align: left">&nbsp;</TD><TD STYLE="color: #000000; text-align: right">58,755</TD><TD STYLE="color: #000000; 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; border-bottom: Black 1pt solid">Change in valuation allowance</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">62,220</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid"></TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">(64,136</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">)</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">(753,920</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-weight: bold">&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; padding-bottom: 1pt; border-bottom: Black 1pt solid">Total income tax (benefit) expense</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">(220</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">)</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">1,185</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD><TD STYLE="color: #000000; padding-bottom: 1pt; border-bottom: Black 1pt solid">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: left">$</TD><TD STYLE="border-bottom: Black 1pt solid; color: #000000; text-align: right">&mdash;&nbsp;&nbsp;</TD><TD STYLE="padding-bottom: 1pt; color: #000000; text-align: left; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: justify; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><B></B></FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: justify; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 9pt Sans-Serif; margin: 0; text-align: justify; color: Red"><FONT STYLE="letter-spacing: -0.1pt"><B></B></FONT></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At December 31, 2019, 2018 and 2017, the
tax effected amount of net operating loss carryforwards (&ldquo;NOLs&rdquo;) totaled $355,240, $247,359 and $282,034 respectively.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has determined, after weighing
both positive and negative evidence, that the net deferred tax asset (DTA) for the Company is not more-likely-than-not to be realizable.
Therefore, valuation allowances of $1,180,604 and $1,118,384 were established at December 31, 2019, and December 31, 2018, respectively,
to completely offset the net DTA in existence at each year end.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Deferred income tax assets and liabilities
are based on enacted tax rates applicable to the future period when those temporary differences are expected to be recovered or
settled. The 2017 Tax Reform lowered the U.S. federal corporate tax rate from 35% to 21%, which caused the Company to remeasure
its deferred income tax assets and liabilities at the new rate. For the tax years ended&nbsp;December&nbsp;31, 2019, 2018, and
2017, the Company&rsquo;s statutory tax rate was 21%,&nbsp;21%, and 35%, respectively. As a result of the change in the statutory
tax rate on our deferred tax assets and liabilities, the Company recorded a&nbsp;$788,347 (after-tax)&nbsp;reduction in its net
deferred tax assets with a corresponding reduction in the valuation allowance for the period ended December 31, 2017. There were
no amounts recorded in 2018 or 2019 related to 2017 Tax Reform.</P>



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



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

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

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

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company evaluates events and transactions
occurring after the balance sheet date but before the financial statements are available to be issued. The Company evaluated such
events and transactions through March <FONT STYLE="background-color: White">30,</FONT> 2020, the date the consolidated financial
statements were available for issuance.</P>

<P STYLE="font: 10.5pt Times New Roman, Times, Serif; margin: 0"><I>&nbsp;</I></P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 30, 2020, the World Health Organization (&ldquo;WHO&rdquo;)
announced a global health emergency because of a new strain of coronavirus originating in Wuhan, China (the &ldquo;COVID-19 outbreak&rdquo;)
and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified
the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The full impact of the COVID-19 outbreak continues to evolve
as of the date of this report. As such, it is uncertain as to the full magnitude that the pandemic will have on the Company&rsquo;s
financial condition, liquidity, and future results of operations. Management is actively monitoring the global situation on its
financial condition, liquidity, operations, suppliers, industry, and workforce. Given the daily evolution of the COVID-19 outbreak
and the global responses to curb its spread, the Company is not able to estimate the effects of the COVID-19 outbreak on its results
of operations, financial condition, or liquidity for fiscal year 2020.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In addition, in March 2020, members of OPEC failed to agree
on oil production levels, which is expected to result in an increased supply of oil and has led to a substantial decline in oil
prices and an increasingly volatile market. However, if the depressed pricing environment continues for an extended period, it
may lead to i) a reduction in the borrowing base needed in order to obtain a credit facility or additional funding, which could
negatively impact our liquidity, ii) a reduction in reserves, and iii) the potential impairment of proved and unproved oil &amp;
gas properties. Consumer demand for our products may also be negatively impacted.</P>

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

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management is actively monitoring its financial condition,
liquidity, operations, suppliers, industry, and workforce. Although the Company cannot estimate the length or gravity of the impacts
of these events at this time, if the pandemic and/or decline in oil prices continue, they may have a material adverse effect on
the Company&rsquo;s results of future operations, financial position, and liquidity in fiscal year 2020.</P>

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

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<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>3
<FILENAME>ex311_302hardycertification.htm
<DESCRIPTION>302 CEO CERTIFICATION
<TEXT>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right; color: blue"><B><A HREF="f10k_equus123119.htm">EXHIBIT 31.1</A></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: 0">&nbsp;</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; font: 11pt/115% Calibri, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt"><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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt"><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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt"><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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
    registrant&rsquo;s other certifying officer(s) 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)) and internal control over financial
    reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

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<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt"><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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">b.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Designed such
    internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
    supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
    financial statements for external purposes in accordance with generally accepted accounting principles;</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">c.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt"><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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">d.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt"><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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">5.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt"><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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt"><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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">b.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt"><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: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Date: March 30, 2020</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 40%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">/s/ JOHN A. HARDY</P>
        <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P></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>
</TABLE>




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<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>4
<FILENAME>ex312_302hudsoncertification.htm
<DESCRIPTION>302 CFO CERTIFICATION
<TEXT>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right; color: blue"><B><A HREF="f10k_equus123119.htm">EXHIBIT 31.2</A></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: 0">&nbsp;</P>

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

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; font: 11pt/115% Calibri, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 11pt/115% Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">1.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 11pt 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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">2.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 11pt 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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">3.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 11pt 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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">4.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">The
    registrant&rsquo;s other certifying officer(s) 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)) and internal control over financial
    reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 11pt 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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">b.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 11pt Calibri, Helvetica, Sans-Serif"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Designed such
    internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
    supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
    financial statements for external purposes in accordance with generally accepted accounting principles</FONT></TD></TR>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">c.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 11pt 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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">d.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 11pt 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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">5.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 11pt 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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">a.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 11pt 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>
</TABLE>
<P STYLE="font: 11pt/normal Calibri, Helvetica, Sans-Serif; margin: 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 73px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">b.</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 11pt 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: 0">&nbsp;</P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">Date: March 30, 2020</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; width: 40%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%; line-height: 115%">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">/s/ L&rsquo;SHERYL D. HUDSON</P>
        <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P></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>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></TABLE>


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<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>5
<FILENAME>ex321_906hardycertification.htm
<DESCRIPTION>906 CEO CERTIFICATION
<TEXT>
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     <TITLE></TITLE>
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<P STYLE="margin: 0"></P>

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right; color: blue"><B><A HREF="f10k_equus123119.htm">EXHIBIT 32.1</A>&nbsp;</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, 2019
(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>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; font: 11pt/115% Calibri, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 11pt/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/normal Times New Roman, Times, 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="font: 11pt Calibri, Helvetica, Sans-Serif; width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; line-height: 115%">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 10pt/normal Times New Roman, Times, 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 30, 2020</P>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 40%; border-collapse: collapse">
<TR>
    <TD STYLE="width: 100%; font: 11pt/115% Calibri, Helvetica, Sans-Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">
        <P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">/s/ JOHN A. HARDY</P>
        <P STYLE="font: 1pt/normal Times New Roman, Times, Serif; margin: 0 0 1pt">&nbsp;</P></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>
</TABLE>




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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>6
<FILENAME>ex322_906hudsoncertification.htm
<DESCRIPTION>906 CFO CERTIFICATION
<TEXT>
<HTML>
<HEAD>
     <TITLE></TITLE>
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<BODY STYLE="font: 10pt Times New Roman, Times, Serif">



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

<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: right; color: blue"><B><A HREF="f10k_equus123119.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, 2019 (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>

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

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 33px; font: 11pt/115% Calibri, Helvetica, Sans-Serif">&nbsp;</TD>
    <TD STYLE="width: 33px; padding-top: 4.5pt; font: 11pt/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% Times New Roman, Times, 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>

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    <TD STYLE="width: 33px; padding-top: 4.5pt; line-height: 115%"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">(2)</FONT></TD>
    <TD STYLE="padding-top: 4.5pt; font: 10pt/115% Times New Roman, Times, 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>
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<P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 9pt 0 0">Dated: March 30, 2020</P>

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    <TD STYLE="border-bottom: Black 1pt solid"><P STYLE="font: 10pt/normal Times New Roman, Times, Serif; margin: 0">/s/ L&rsquo;SHERYL D. HUDSON</P>
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        <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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